Tax on an inherited or gifted home

[w442]

What is the name of your state (only U.S. law)? Utah

Hello,
My father recently inherited a house from my Grandmother when she passed away last month. My grandmother actually signed the home over to my Dad a year and a half ago, and now recently passed. Is this considered an inherited home or a gift? What is the tax difference between the two?

I have a few general questions, as we do not even know where to start.

Our main question is:
What kind of taxes are we looking at if we sell the home?
what would be the general process in making this happen? (If different from selling a home the regular way)
What would be the best plan of action in selling the home? any tricks to avoided being taxed like crazy?

 

[FlyingRon]

The good news is unless grandma had an aggregate worth of several millions, there's not any gift/inheritance tax due.

The bad news is that since dad received it as a gift and not inheritance, he got grandma's presumably low basis. If he sells it, capital gains is due on the difference between what grandma paid for it and what you sell it for (adjusted for any capital improvements plus if grandpa was an owner and died leaving his share to grandma, that may have stepped up at the time of his death to the fair market value).

You sell it like any other property. It would behoove you to have a tax professional compute the basis for you.