If you own one or more inherited homes, you might be wondering about laws applying to these homes, such as tax laws. If this is the case, you should definitely take a look at this video. In some cases, this can happen when a family member passes away and leaves the home to someone who is still alive.
People might wonder how much tax they will have to pay on the home if they sell it, for example. The truth is that this amount is going to vary quite a bit, based on how the home was titled and other factors.
If the piece of property is inherited, step up and basis can help. It can account for an increase in property value from when the property was first purchased. For example, if it was first purchased for $100,000 and has tripled in value ever since, you can sell the home for its current value and not have to pay any additional taxes. However, this is only true if you sell it as soon as the person passes away. If there is additional appreciation after the date of death, this amount is not protected, and you do have to pay taxes on it.