Do I pay capital gains tax on an inherited home that I sell for less than the appraised amount?

Answer by  Att4372 (1704)

Sale of a home you live in is not a taxable event. If you did not live in this home, you claim a capital loss on schedule D.

Answer by  Joe23 (12)

No, when you inherit something the cost basis resets to the value of the asset on the date that you inherit the asset (which would be likely an appraised value. So there is no gain in this case, nor can you declare a loss on the sale of a home.

Answer by  tamarawilhite (17883)

The capital gains are based on the stepped up value at the time it was inherited and the amount that it sold for, not its appraised amount.