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| Re: If You Plan On Selling Your Home (913531) | |||
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Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 11:46:55 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 10:02:55 2012. The widowed old lady received a step-up basis on her husband's half of the home value, Chris.Assume they bought a house for $30,000 and when Dad died, it was worth $400,000. Her step-up basis on his half is now (400-30)/2, or 370/2=$185,000. Assume a few years later she sells to move near her kids. Her basis is 185 + 15 (half of 30) = $200,000. Assume the house sells for $500,000. Taxable gain is $300,000 (500-200). She gets a $250,000 exemption so she's taxed on $50,000. $50,000 * 3.8% = $1900 in taxes. She certainly can afford this because she just got a check for $500,000. |
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