What taxes do I have to pay on an inherited house? 4 Answers as of November 17, 2010

I inherited my parents house when my mom died this year. I want to keep the house, but I am not sure what taxes I will have to pay on it. Do I pay the property taxes? Am I taxed on the value of the house as well? If so, what kind of percentage is that?

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Masson & Fatini, LLP
Masson & Fatini, LLP | Susan Fatini -Masson
You do not need to pay an income or capital gains tax on real property you inherit. This is because when you inherit real property, you also inherit the "basis" or "value" of the property as of the time the person died. When you sell the property, however, you will be required to pay a "capital gains" tax based upon the increase in value between your basis and the actual sale price of the property. In addition, you may have to pay taxes if the property is used as an investment property.

You are, however, required to pay the property taxes. These are due yearly, but can be paid bi-annually. You should contact your county treasurer for information about the amount and due dates.
Answer Applies to: California
Replied: 11/17/2010
David Hoines Law
David Hoines Law | David Hoines
Property taxes: if you live in Florida, no inheritance or estate taxes.
Answer Applies to: Florida
Replied: 11/17/2010
Givner & Kaye
Givner & Kaye | Bruce Givner
The Federal government does not impose any "estate taxes" for the estates of people dying in 2010. (Congress has until 12/31/10 to change its mind about that.)

"Inheritance taxes" are imposed by the States. So you need to tell us the state in which you live before we can answer that question.
Answer Applies to: California
Replied: 11/16/2010
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