My wife has an Inheritance, what do I need to know?

Jespah's point is well taken. You can inherit a house, and if you sell it, you pay capital gains tax. That's precisely why the tax for the first capital gain is 5%, because that is the most common situation in which someone owes capital gains tax. If there are additional sales of property, such as automobiles, boats, works of art, other properties, those are also subject to the capital gains tax.

Inheritance should pass the house at the current value. Any gain after you inherit you will be taxed. If your father bought the house for $5,000 and it was valued at $250,000 on the day he died then $250,000 would be the basis for capital gains if you sell it after inheriting it.

http://www.smartmoney.com/taxes/income/taxes-on-investments-received-as-a-gift-or-inheritance-9533/


That shows why eliminating the inheritance tax is great for rich people. They can leave assets to their children and they can avoid taxes altogether if there is no inheritance tax.

Exactly, and that's what Jespha and i were talking about.

But that gain will be minimal.

If you inherit $800,000 worth of property how much gain do you think you will get in the first few months? If the person died 6 months ago, Feb 17, and left you $1 million in DOW stocks your gain would be ZERO today. In fact you would have a capital LOSS if you sold today.

I agree with you to a point but we have been married almost 30 years and as far as I know everything is suppose to be 50/50 but I am sure that I can be wrong about that.

I have been under the impression that all financials between us are owed or are the benefit of the both of us.

It is her money so I will try not to be disappointed if she does not spend how I think may be fit. I will be glad to see anything come my way. A new car for me is in our plans and that seems cool

Depends on where you are and what the property is. Stocks generally are still haven't done well, but in some areas houses are still increasing in value for it to make a difference (perhaps not in the U.S.).

When my father passed away and I inherited the house I paid capital gaines. He owned the house outright and bought it in 1985 for 289k. When he passed I sold it at a time when the market was very high, 2006.

In CA, capital gains on the sale of a home are included in your income and taxed at whatever tax rate is appropriate to your tax bracket.

The first thing I did was hire an attorney, I was 22 years old and had no idea what I should be doing. To me hiring the attorney was well worth the money.