Inheritance and capital gains
My mother took her name off and put my name and my brothers name on the house a few years ago. Now that she has passed is this considered an inheritance? We want to sell the house hence will we be paying capital gains tax or inheritance tax ?
1 Answer from Attorneys
Re: Inheritance and capital gains
This is not an inheritance, because you and your brother owned the house before she died. Unfortunately, by doing it this way, when you sell the house you may have to pay capital gains tax (15%) on the difference between what your mother paid for it and paid to improve it, and what it was worth as of her date of death. If she'd left it to you in her estate, you wouldn't have any capital gains tax. But if you've lived in the house for 2 of 5 years prior to sale, you'll be able to avoid this tax in all likelihood.