Selling of condo
My wife and her sister are selling their late mother’s condo. After they split the proceeds what is the best way to limit taxes from the sale?
Terry Says
How long ago did the mother die? If recently, there will be no taxes on the sale, as the property receives a “step-up” in value as to the date of her death. That is, if she purchased the condo years ago for say $250,000 and died within the past six months, and the sale price was say $350,000 — there is no tax because the property is valued as of the date of her recent death.
If, on the other hand, the mother died several years ago, and one daughter lived there, or if it was rented out, then you might have a capital gains tax on the appreciation since the date of the mother’s death. YOu’d have to get an appraisal and official estimate of value on the date of death if it was a while ago.
