If you inherit a house, do you have to pay capital gains tax on it?
Asked by: Jesica Hogan
Say you inherit your parents’ home. Say they bought it 30 years ago for 35,000. Say at the time of death it was worth 200,000. Do you and any other beneficiaries in the will have to pay capital gains tax in the house? If so, how is the capital gains tax determined? Is it 200,000 minus 35,000 multiplied by .15 (the long term capital gains tax rate)? And then would this total capital gain tax obligation be divided among all of the beneficiaries based on their inheritance share? Thank you for your advice.