Selling An Inherited House in Pasco
The experience of inheriting a home is bittersweet. While you’ve been given a property with the value you can use to improve your and your family’s lives, you are also left dealing with the impact of losing someone close to you. It’s honestly really hard to think about all the red tape and details that the complex process of selling an inherited home in Florida entails when dealing with the loss of a loved one. This is even more true when there is a probate process or tax issues. But whose mind is on taxes with the emotional weight of the reality of loss so fresh?
If you are reading this, you likely have realized there may be tax issues and are looking for some insight into the road ahead. First, the good news is that the tax laws around selling an inherited property in Pasco County add no additional burden to anyone inheriting a property. That being said, let’s look at the tax consequences you will have to navigate when selling your inherited house in Pasco County, Florida.
Tax Consequences of Selling an Inherited House in Florida
To understand how the tax will be figured out on your inherited home, you will first want to know how its “basis” will be calculated. The term “basis” here refers to the asset cost of the house. This is used to figure out tax issues like capital gains, etc. The value, or basis, of the property is determined at the time of death of the previous owner. In Pasco County, this value is increased to the house’s current market value. This means if the house was purchased 30 years ago for $75,000 but was valued at $250,000 at the time of their death, the basis would be the latter of these amounts.
When it comes to calculating your capital gains or losses, this is where the basis is used. When you sell a house you inherited, as far as your taxes go, it will go as a capital gain or loss. One benefit under Florida law for selling an inherited home is that you do not have to wait the normal one year of ownership needed to qualify for a low-rate long-term capital gain.
Once the home is sold, it will need to be reported for tax purposes. To do this, you’ll need to first calculate your actual capital gain or loss after selling the property. Simply subtract the basis from the amount you sold the house for and report that amount as your loss or gain.
Selling Your Inherited House in Pasco County to Easy Sale Homebuyers is a Simple and Fast Process
Easy Sale Homebuyers has spent years building a reputation for fairness when working with homeowners in Pasco County and throughout Florida. If you own an inherited home in the area and have more questions about potential tax issues you may face or would like to know what Easy Sale Homeowners might pay for your home, simply fill out the form on our website, contact us via email/social media, or call us at 813-755-8573. We can get you cash in hand for your inherited home no matter what tax complications you need to negotiate, so give us a call today.