Monday, December 5, 2016 / by Nicole Solari
So many people ask themselves if they will be exempted from the hundreds of thousands of dollars of taxes if they sell a house they inherited. The simple answer is no.
Selling a house that you inherited does not exempt you from any of the taxes. The only benefit that you get is the stepped-up basis rules for any property that is inherited.
Therefore, that means that whenever you sell an inherited property or a home, you are not excluded from the taxes.
The tax law provides homeowners with very generous tax exclusions when they sell their property. Up to $250,000 of any gain from such a sale received by a single homeowner is tax-free. For married homeowners filing jointly, up to $500,000 of gain is excluded from income.
To qualify for the exclusion, the home must have been used as the main home for two years out of the prior five years before t ...