Taxes Owed On Inherited Property

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Summary: Taxes on inherited property are paid by the estate. If the inherited property is owned for a year or more and then sold, long-term capital gains tax will be owed. But taxes shouldn’t be owed on inheriting the property itself.

Q: My dad recently passed away and owned some property. My question is what can my 3 brothers and I expect to pay in taxes, etc. for inheriting the property?

A: You shouldn't pay any taxes for inheriting the property. Any taxes owed would have been paid by the estate. If you sell the property right away, you also should not owe taxes. But if you hold it for a year or more, and then sell the property, you will pay long-term capital gains tax on the difference in price between the value at the date of inheritance and the day you sell it.

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Related Topics

• capital gains, 
• inheritance, 
• real estate advice, 
• taxes

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