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Federal Taxes

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NeedHelpInPA

Junior Member
What is the name of your state? PA

My Mothers will is coming to a close, I can finally start the process of selling her house.
She left it to me and nephew whom I agreed to sell it to for a family member sale to in part ease is his burden on how much he has to pay and to ease the amount of taxes I would have to pay.

My sister is the executor, and she explained to the lawyer of what my plan is, and they asked why I was taking so much money of the house value, and she explained my reasons, they said that selling my mothers house is not taxable, since it is consdered a gift.

Remember these are professional lawyers saying this.

I was under the impression that if the house becomes liquid, or revenue is earned such as from renting the property, than all monies are taxable?

Please can you tell me which one is true and why? I would love to the believe the lawyers.

Thank You,
Matt
 


mtpockets

Member
Post-death gain is taxable

To calculate the gain: subtract the basis from the net sales proceeds.

To calculate the basis: add the cost of any post-death improvements to the fair market value at date of death.

To calculate the net sales proceeds: subtract all selling expense from the gross sales proceeds.
 

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