If you inherited a house and you sell it for less than it was appraised at, do you still have to pay capital gains or would you be taking a loss?
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If you inherited a house and you sell it for less than it was appraised at, do you still have to pay capital gains or would you be taking a loss?
Asked on December 10, 2011 under Real Estate Law, New Jersey
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If one is a beneficiary under an estate where a piece of real property is received by a person with a fair market value upon death at $357,000 and is then later sold for $345,000 a year and a half later, the person receiving the property would report at $12,000 long term capital loss on the transaction in the above example.
Likewise if the property was appraised at $345,000 upon the person's passing and was sold for $357,000, there would be a $12,000 long term capital gain.
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