For Estate Tax purposes

[SSD53NJ]

What is the name of your state? NJ
Can I use a website like Zillow or HouseValue or a real estate agent to accurately appraise the value of of properties for estate tax purposes on the date of inheritance?
Also property in NYS that is inherited by a NJ resident that never has been recorded, how is that dealt with? For years my parents have been paying taxes on the property but when/if I inherit this how would I deal with it if I wanted to sell it? Would I have to pay taxes on mortgage payments? The property was bought many years ago for $10,000 cash & is now worth over $100,000.

 

[lcannister]

What is the name of your state? NJ
Can I use a website like Zillow or HouseValue or a real estate agent to accurately appraise the value of of properties for estate tax purposes on the date of inheritance?
Also property in NYS that is inherited by a NJ resident that never has been recorded, how is that dealt with? For years my parents have been paying taxes on the property but when/if I inherit this how would I deal with it if I wanted to sell it? Would I have to pay taxes on mortgage payments? The property was bought many years ago for $10,000 cash & is now worth over $100,000.

First question on appraisal, you would be best served by getting an accurate appraisal by a competent appraiser.

Estate Planner can answer your other questions and even eliminate your having to deal with any of these issues at the time of death, so see one.

 

[SSD53NJ]

For Estate Tax Purposes

All I need to know is if the IRS & NJ tax dept will accept an appraisal (FMV) from a legitimate website &/or a real estate broker intereseted in selling the property. You can keep the estate planner for estates worth more than $675,000. If you know the law in this regard please respond.

 

[tranquility]

I don't know about NJ, but the IRS will not. You need an appraisal done by a qualified appraiser.

 

[LindaP777]

Most of the time, I find Zillow has a very conservative value (under valued).

 

[SSD53NJ]

For Estate Tax Purposes

Funny you should say, (tranquility) the IRS won't accept an appraisal from a website cause they answered me that they would generally accept an appraisal from them if I got two different sources to substantiate. Can you tell where you got your information from? Otherwise I don't an appraiser is necessary.

 

[lcannister]

All I need to know is if the IRS & NJ tax dept will accept an appraisal (FMV) from a legitimate website &/or a real estate broker intereseted in selling the property. You can keep the estate planner for estates worth more than $675,000. If you know the law in this regard please respond.

An estate planner can help people protect an estate of 10K from various and sundry scenarios.

IRS generally will NOT accept the website appraisals that you have mentioned. They are very inaccurate and unreliable in MANY instances.

 

[lcannister]

Also property in NYS that is inherited by a NJ resident that never has been recorded, how is that dealt with?

If the property has "never been recorded" how are you going to prove ownership to sell it or anything else?

We all like to save money but sometimes it is best to spend the 300-500 and get all this done right. I could cut my skin open for an appendectomy, but I am gonna' bleed to death when I faint at seeing the bleeding becasue I would have no idea what I was doing. You however, have just enough knowledge to do things wrong.

 

[SSD53NJ]

For Estate Tax Purposes

I don't think the analogy fits but be that as it may, what I need to know is as follows: my folks bought the property & paid cash for it in NYS years ago, & when/if I inherit it at a stepped up cost basis, if I want to sell it for the price it's appraised, would I have to pay capital gains or any tax Federally, in NJ? Doesn't a mortgage require some sort of tax reporting?

 

[PghREA]

I don't think the analogy fits but be that as it may, what I need to know is as follows: my folks bought the property & paid cash for it in NYS years ago, & when/if I inherit it at a stepped up cost basis, if I want to sell it for the price it's appraised, would I have to pay capital gains or any tax Federally, in NJ? Doesn't a mortgage require some sort of tax reporting?

When you inherit the property, you should have it appraised by a certified appraiser. That is your cost basis. When you sell it, if you sell it for more than it is appraised for, you will pay capital gains tax. NJ follows the federal policy on the sale of real property.

 

[lcannister]

If the property has "never been recorded" how are you going to prove ownership to sell it ?

And the answer is??

If the property has "never been recorded"

at least by your parents then whose name is on the "recorded" deed?

Doesn't a mortgage require some sort of tax reporting?

WHAT MORTGAGE???? Are you talking about selling it and carrying the paper for the buyer? If so then yes it has to be reported.

Now maybe we just have a case of miscommunication but some of your questions for the response you want do not make much sense.

Good luck.

 

[lcannister]

Oh and you better clear up that "recorded" issue BEFORE something happens to the parents.

 

[SSD53NJ]

For Estate Tax Purposes

Questions:
If I sell the property soon after I inherit for its appraised value then there is no cost basis & capital gains, correct?
If I sell it for more than the appraisal I owe capital gains only on the amount over the appraisal, right?
If someone buys it for 100K I don't expect they'll have that kind of cash so I'll have to carry a mortgage & receive some kind of 1098, will there be any tax to pay other than the above mentioned?
I guess recorded just refers to the name(s) on the deed which has my parents names on & would change when I inherit & I can take care of.

 

[lcannister]

If someone buys it for 100K I don't expect they'll have that kind of cash so I'll have to carry a mortgage & receive some kind of 1098, will there be any tax to pay other than the above mentioned?

What makes you think they will not go to a bank and get their own financing and pay you for the property at a closing?

IF your scenario were true, yes you would pay taxes on the interest portion of any payments you received.

See, you are right in trying to assist your parents, or is it yourself, but understand what you are doing if you are unwilling to spend a few in order not to make costly mistakes.

 

[SSD53NJ]

For Estate Tax Purposes

How exactly does that work? If somebody gets their own mortgage, don't I get monthly payments, or the whole thing at once? What interest would I be paying taxes on here?