Legal Question in Real Estate Law in Florida

Re: Capital gains

Upon your inheriting your mother's home, you received a "step-up" in basis. That means that when you sell the property ONLY the GAIN OVER THE FAIR MARKET VALUE AT THE DATE OF YOUR MOTHER'S DEATH is subject to capital gains tax. You need not worry about the $250,000 tax exemption, which only applies when you sell a home which you have personally owned and lived in for at least 2 of the past 5 years. I cannot answer for sure on Virginia or California's tax. If they have an income tax, you might be subject to state income tax on part of your sale price.

I assume you have completed any necessary probate to pass the home on to the two of you. If not, and I can be of any asistance, please contact me.

God bless, Frank Pyle

Re: Capital gains

You do not get the $250,000.00 per person tax exemption, as this is only relevant to the sale of a personal residence. You will have to pay taxes on capital gains taxes to the federal government of 15% and 9.3% to the State of California on any profit over and above the value of the house on the date of mom's death. Your sister will have the pay the same federal tax, but I don't know what the Virginia capital gains tax is.