Estate Taxes, Capital Gains Tax?

[cubman86]

What is the name of your state (only U.S. law)? Montana
Myfather died last year without a will and we selected my brother as the personal representative of the estate- the estate went through probate and we then decided to sell my father's house. It just recently sold and my brother paid all the estate bills, etc. He has just divided up the assets among the 3 of us and I just yesterday got a check for $33,000. What is my next step as far as taxes, etc? Do I owe estate taxes or capital gains taxes or anything else for that matter? I plan on seeing a tax professional but would like to know what I am looking at. Thanks

[tecate]

Did your brother sell the house, as executor, or did he distribute it to the 3 of you, and then, the 3 of you sold it?

BTW, the fair market value of the house should be its new tax basis, used for calculating gain or loss.

[LdiJ]

Originally Posted by cubman86

What is the name of your state (only U.S. law)? Montana
Myfather died last year without a will and we selected my brother as the personal representative of the estate- the estate went through probate and we then decided to sell my father's house. It just recently sold and my brother paid all the estate bills, etc. He has just divided up the assets among the 3 of us and I just yesterday got a check for $33,000. What is my next step as far as taxes, etc? Do I owe estate taxes or capital gains taxes or anything else for that matter? I plan on seeing a tax professional but would like to know what I am looking at. Thanks

Odds are that there will be no tax ramifications at all. You all received a stepped up basis (to fair market value at the time your father passed away or the alternative date six months later), so its unlikely that the house resulted in a capital gain, because the selling costs likely wiped out any minimal appreciation.

However, if any assets that would have been taxable to your father, passed outside of the estate (ie retirement accounts) you may have some taxable income there. Stock sales could also result in some capital gain or loss as well.