Tax consequences when selling a house I inherited in Augusta

Inheriting a home is a pretty sweet experience, yet bitter at the same time… You are left with great property value you can use to improve your life, but you are still mourning the loss of a loved one. So you may tend to ask yourself at this point, “what are the tax consequences when selling a house I inherited in Augusta GA?” The tax laws have been designed in a way that will not add any more burden to you upon inheriting the property. This implies that the financial consequences are less daunting than you would expect, which is good news.

tax consequences when selling your Augusta house in you inherited

Tax Consequences when Selling a House I Inherited in Augusta, GA

Calculation of basis
To comprehend how you’ll be taxed for having inherited a home, you must know how the basis is calculated. Basis, in this case, refers to the asset cost for the calculation of capital gains along with other taxes. When a person dies, the value or basis of their property in Augusta is increased to the market value at the time of their death. For instance, if a person purchased a home 20 years ago for $25,000 but it was worth $100,000 at the time of their death, that property would be valued at the latter amount to calculate capital gains.

Taxation of gains/losses

Capital gains or losses refer to what you earn from selling property for personal or investment purposes, such as houses, furniture, and many more things. If you decide to sell an inherited home in Augusta, that sale is regarded as capital gain or loss for income tax. In most cases, you must have held that property for at least a year to qualify for lower rates of long-term capital gains. However long you have owned an inherited home, any gain or loss will still be treated as long-term.

Reporting the sale

Upon selling an inherited home, you have to report it for income tax purposes. It would be best if you first calculated your capital gain or loss. This is done by subtracting the basis from the sale amount. You should then report that amount to the necessary authorities.

Having an inherited home can be stressful, given that you have new property to take care of and pay taxes for it simultaneously… It would be best to go through the probate process in Augusta as the first step to selling your home. The court will then authorize you to proceed as you wish. If any other individuals are involved in the inheritance, you should first agree with each other on that decision. You can then file a petition requesting the court to allow you to sell the property.

It would be best to consider how much tax you are to pay. This will be paid against the capital gains or losses resulting from the sale of the house. You can call HAS Holdings LLC now at 706-873-1213 to undertake a smooth and legitimate sale of your home. We are local here in Augusta GA and know the market better than anyone else. If you are still asking yourself about the tax consequences when selling a house I inherited in Augusta, we would be happy to discuss it in more detail.

Selling an inherited house can relieve you of quite a burden. In addition to that, selling the property to an investor is a basic, simple, and fast process. Contact us with inquiries on how to go about things when selling your home in Augusta, and we will be glad to help you.

Just fill out the form through this link to get a FAST FAIR
Cash Offer On Your GA House >>

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

No Obligation! GET YOUR CASH OFFER!

  • Hidden
  • This field is for validation purposes and should be left unchanged.