QUESTION
What are the tax implications or will we both get a tax break if we sell the house?
Asked on Dec 13th, 2013 on Taxation - California
More details to this question:
When my late husband passed, I became sole owner of our home, it was also mentioned in his Will. I have lived in the house for over 5 years. My current husband has only lived in our home for about a year. We are now planning to sell our property in Los Angeles. What are the tax implications or will we both get a tax break. I just added his name to the deed this year. We filed a Quit Claim Deed in June of this year.
1 ANSWER
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Your basis in the house is its value at the date of your late husband's death. Gain will be measured against that amount. If you file a joint return with your new husband, you can exclude up to $500,000 of gain. (If you file separate, only $250K.) If you buy another house in Los Angeles County and are old enough, you may be able to keep your low property taxes and transfer that level to the new house.
Answered on Dec 18th, 2013 at 10:12 PM