If You Inherit a House and Sell It, How Are the Profits Taxed?
If you sell your house and make a profit, you must pay capital gains tax—so does the same rule apply when you inherit a house from a deceased relative? The truth is that inheriting property can be taxing—both emotionally and financially.
The amount you must pay when you sell an inherited property can indeed take a toll on your bottom line. But before we discuss the details, let’s take a closer look at what capital gains tax actually is.