Legal Question in Wills and Trusts in California
Mortgage debt on inherited property
My sister-in-law has inherited her mother's house in CA. I understand the basis is the FMV (approx. $240,000) at the time of the mother's death, but there is also a $70,000 mortgage remaining on the house. Is the mortgage figured into the basis of the house, does it decrease the sales price of the house when they sell it, or does it have no effect at all on their gain/loss?
Asked on 2/14/08, 12:54 pm
1 Answer from Attorneys
Mitchell Roth
MW Roth, Professional Law Corporation
Re: Mortgage debt on inherited property
It has no effect on the gain or loss for tax purposes. But, of course, it must be paid off when the house sells.
Answered on 2/14/08, 1:14 pm
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