Legal Question in Wills and Trusts in Florida
A house in new jersey is left to a daughter. When the house sells are the receipts liable for income tax? What if the receipts were used to purchase stock, would there be a tax.
The daughter is a florida resident
Asked on 6/14/14, 8:34 am
1 Answer from Attorneys
Kevin Pollock
Law Office of Kevin A. Pollock LLC
I'm a bit confused by the question. Typically if a person dies and leaves real estate to a child, it receives a new basis equal to the fair market value. If the property sells shortly thereafter, there is typically no gain (because of the new basis) and therefor no tax.
If the property did appreciate after death, yes, the beneficiary would be responsible for that gain, but would also be entitled to all the proceeds.
Answered on 6/16/14, 8:43 am
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