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Capital gains tax on inherited property (Wills & Trusts)

Fri, 30 Sep 2005 23:39:00 GMT

What is the name of your state?What is the name of your state? CA
My mother passed away in July. She had put her property in mine and my sisters name 8 years ago in a Living Trust. Neither my sister or I lived in this house as my Mom lived there until her death. We are selling the property at this time. Will I owe capital gains tax on my share of the profit on the house? Will I owe federal and state income tax as well? The amount is under 65,000. If I reinvest the proceeds from the sale of the house on a primary residence for myself can I avoid the taxes (1031 exchange)? Or does this inheritance fall under estate taxes and not capital gains? I appreciate any help

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  • Sat, 01 Oct 2005 09:13:00 GMT(1)
  • This question is for the tax law message board or consult with a local CPA or tax accountant.
  • Sat, 01 Oct 2005 10:08:00 GMT(2)
  • Thank you for the reply. That was my plan to see a Tax attorney. I just thought someone may know the laws and give me a quick answer. This has been a very sad time for my sister and I. Add to that all these unanswered questions about settling her estate. I guess it is part of the cycle of life. Anyway thanks again.
    Amanda Michelle
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