Legal Question in Tax Law in California

taxes on sale

I just finished Probate with the intent to sell. Iv never lived in the home. Im selling it for the same ammount the estate was appraised for. Do I need to pay capital gain or sales tax ?? And how much, i know sales tax in CA. is 7.25 so is that what I have to pay?? The estate is under 250,000

Asked on 6/19/08, 3:26 am

1 Answer from Attorneys

Jeb Burton The Burton Law Firm

Re: taxes on sale

In general, if the property was 100% owned by the decedent at the time of their death, then the property stepped up in basis. This means that whatever the FMV at the time of death (the appraised value most likely) is the estate's basis in the property. If you sell property for the same price as your basis in the property, then there is no capital gains tax (which is most likely what property would be liable for, not sales tax). So under the scenario you described, if you sell the property for 250,000 or less... there should be no tax on it.

Read more
Answered on 6/19/08, 1:24 pm

Related Questions & Answers

More Tax and Taxation Law questions and answers in California