A very simple solution is to sell the home quickly for cash.
One way to acquire a property is as an Inheritance.
Inheriting a house can be a gift or a burden depending upon the singular situation you are in. There may be tax consequences, management and maintenance issues, property taxes and more.
Estate TAXES: When you inherit a house in Arizona, what are the tax consequences?
Does the Home Sale Tax Exclusion Apply to Inherited Property?
No, UNLESS you live in it for at least 2 years.
Typically, when selling your personal residence, the tax law gives you an exclusion of $250,000 (or $500,000 for married couples filing jointly). That means you don’t have to pay taxes on the first $250,000 (or $500,000) of profit you gain from the sale of your home.
However, when you sell inherited property, you don’t qualify for that tax exclusion. In order to qualify, you would have to live in the home for at least two years, using it as your primary residence.
You may benefit from the “stepped-up basis” rules for inherited property.
What Are the Stepped-Up Basis Rules for Inherited Property?
The “basis” of a property is its cost or purchase price. But in the case of inherited property, the “stepped-up basis” is the fair market value at the time of the owner’s death. That’s USUALLY a higher number, which can work in your favor. When you sell the property, your taxable gain or loss will be determined by whether the sale price is higher or lower than the stepped-up basis.
For example, if you inherit a house that has an appraised value of $200,000, and you sell it for more than that amount, you will have a taxable gain (Capital gain). If you sell it for less than that amount, you will have a loss
If I Sell an Inherited Home, Can I Deduct a Capital Loss from My Taxes?
A tax advisor will be very helpful during this process. If you inherit a house and sell it for less than its fair market value or more than its fair market value, this will directly affect your taxes. There is a limited amount that you can declare as a loss. Speak to an accountant.
How to sell an Inherited House quickly?
Preparing to sell a home conventionally will take time and effort. Typical items to take care of in prepping an inherited property for sale may include: roof coating, heating and cooling equipment service, painting, plumbing or electrical wiring repairs etc.
The fastest and easiest way to sell an inherited house is with a locally owned business, 520 Home Buyers. Contact us today. You may be able to get cash for your home and be done in less than 2 weeks.
PROBATE
Probate cases present a challenge to courts across the country. They require a high degree of oversight to protect and prevent mistreatment of protected individuals and their property.
In Arizona, if a will is not present, the first person to inherit the property is the spouse followed by the children and then the closest relative. When it comes to Arizona law, children, in this case, includes half-siblings which could mean having to divide the property between many people. Dividing up a loved one’s home can bring a lot of stress into an already difficult time.
To help alleviate some of this stress, 520 Home Buyers may be able to get cash for your home and be done in less than 2 weeks.