Question for the Money Doctors
Question submitted on Feb 17, 2011.
QuestionWe are selling some property that was given to my husband and his brother by their grandfather over 10 years ago. Will we have to pay tax on capital gains? The land was deed in 98...Thanks
That depends on a few things. The selling price minus cost/expenses.
Without knowing the basis (what was it worth when you inherited it in 1998?) vs what will you sell it for now?
You may have a loss!!! The benefit of a depressed real estate market is that gains should be lower...therefore lower taxes.
Write me back with the worth when they got it (gift?/inheritance? alone makes a big difference in calculating the basis), how much grandpa paid for it, how much they will sell it for. Did they write off the taxes all these years? If not that will also save them some tax money.
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