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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Comments
Scott says
My father passed away in 2007 and i inherited his home, i just today 2010 found out that property taxes were owed since 2000, and i was served with papers today by the tax collector am i liable for these taxes that are over 10 yrs old
ST says
If you don't want to lose the property, you will have to pay those property taxes that are owed on your father's property. You are probably not liable for them, but if you don't pay them, most municipalities have the right to sell the property off to pay themselves the money owed for back taxes owed.