What is the name of your state? VA
My mother passed away in September of this year (2004) and left me her home and 1/3 interest in another home that she owned. The second home is assessed at $62.4k but the market value is in the neighborhood of $75-$80k. My brother was bequeathed the other 2/3 interest in that home with the understanding that it is to be sold within one year of her passing and all proceeds after paying off the mortgage are to be divided between my brother and myself. Her will is currently in probate and I am the nominated and named (by the courts) executor of her estate. My questions are...
1: The home that she left to me is assessed by the city for tax purposes at $92k. What, if any personal tax ramifications can I expect other than the quarterly personal property taxes? Is there an inheritance tax I will have to pay now or at the sale of the home if I ever sell it? I like to file my taxes ASAP after receiving my W-2 form so I'd like to be prepared.
2: If I buy out my brother's share of the second house, what is his tax responsibility, if any? What about my inheritance tax responsibility on that house?
3: If I sell the second house to a third party and my brother and I do split the proceeds, what are our individual tax responsibilities?
4: I recall reading somewhere that unless an inheritance exceeds $500k, there is no tax liability, is that true?
Thanks in advance for any help!
My mother passed away in September of this year (2004) and left me her home and 1/3 interest in another home that she owned. The second home is assessed at $62.4k but the market value is in the neighborhood of $75-$80k. My brother was bequeathed the other 2/3 interest in that home with the understanding that it is to be sold within one year of her passing and all proceeds after paying off the mortgage are to be divided between my brother and myself. Her will is currently in probate and I am the nominated and named (by the courts) executor of her estate. My questions are...
1: The home that she left to me is assessed by the city for tax purposes at $92k. What, if any personal tax ramifications can I expect other than the quarterly personal property taxes? Is there an inheritance tax I will have to pay now or at the sale of the home if I ever sell it? I like to file my taxes ASAP after receiving my W-2 form so I'd like to be prepared.
2: If I buy out my brother's share of the second house, what is his tax responsibility, if any? What about my inheritance tax responsibility on that house?
3: If I sell the second house to a third party and my brother and I do split the proceeds, what are our individual tax responsibilities?
4: I recall reading somewhere that unless an inheritance exceeds $500k, there is no tax liability, is that true?
Thanks in advance for any help!