Who pays the taxes on the sales of inherited property?

Answer by  patti (29325)

The individual who inherited the property becomes the owner of the property. As the owner, s/he can detail closing costs responsibility as part of the sales agreement.

Answer by  cynosure (376)

The beneficiary. When property is inherited, the basis of the property is "stepped up", and estate tax (if any) is paid by the estate's beneficiaries on the value difference between the deceased's basis and the transferee's basis. At sale, again, the beneficiary pays any imposed taxes on value over basis.

Answer by  tamarawilhite (17883)

The person who inherited the property pays the tax on the inheritance. They will then pay capital gains on the property if they hold it more than a few months after inheriting it.

Answer by  JDBIII (222)

If property is inherited and kept or inherited and then sold, it is the individual who inherited the property that pays the taxes. Taxes on inherited money or property is a big issues these days. Many believe the tax should be high, while others claim the tax is unfair.

Answer by  sam2226 (57)

I think you should have to pay the tax for you r inherited property.Its your duty to pay it because its yours.Its based on what i know regarding our situation.

Answer by  tamarawilhite (17883)

The person who inherits the property pays the inheritance tax, if any. For small amounts of money or modestly valued property (under 500,000), no inheritance tax is due. State estate taxes and inheritance taxes depend on where you live. If the person inheriting the property is their spouse, no inheritance tax is due.

Answer by  Ritika27 (5)

My Father who is the owner of the inherited property pays the taxes. He is the one who is earns the major part of the income for the whole house hold and the property is owned by him.

Answer by  Mgarcia (752)

This depends on how the property is inherited. If the property was inherited to a trust and then sold then the trust pays the taxes. If the property was inherited to a person and sold the person has to pay the taxes.