Monday, December 05, 2016 / by Nicole Solari
So many people ask themselves if they will be exempted from the hundreds of thousands of dollars of taxes if they sell a house they inherited. The simple answer is no.
Selling a house that you inherited does not exempt you from any of the taxes. The only benefit that you get is the stepped-up basis rules for any property that is inherited.
Therefore, that means that whenever you sell an inherited property or a home, you are not excluded from the taxes.
The tax law provides homeowners with very generous tax exclusions when they sell their property. Up to $250,000 of any gain from such a sale received by a single homeowner is tax-free. For married homeowners filing jointly, up to $500,000 of gain is excluded from income.
To qualify for the exclusion, the home must have been used as the main home for two years out of ...