Ask Terry Questions taxes on sale of inherited property

taxes on sale of inherited property

By Terry Savage on March 19, 2023 | Taxes & Economy

does the proceeds from the sale of inherited property have to be reported as income ?

Terry Says

No. At least not if you sell immediately. You receive the inheritance tax free. The value at the date of death is your “cost basis” for assets that have a market value, such as a house. Then when you sell, the proceeds are yours. But if you hold the asset — such as a stock — for several months and the price has gone up in value, then you could be liable for the tax on the increase in value from the date of death.

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