Selling A House In Probate In Pittsburgh…
Selling An Inherited House First Steps
Some of the first things you should consider when selling an inherited house in Pittsburgh are:
- Did my loved one have a will?
- How Do I File For Probate In Pittsburgh?
- Should I Hire An Estate Attorney?
- What Are The Tax Implications of Selling An Inherited Home?
- How Do I Prepare The Home For Sale After Filing Probate?
We will discuss these key points below….
Capital Gains and Other Tax Implications of Selling an Inherited Home
It is important to determine how selling an inherited home will impact you on a financial basis. You may be subject to taxes from selling or inheriting a home, and there are various resources to determine how much you owe, and if any taxes are due.
Inherited properties do not qualify for the home sale tax exclusion. Normally, in a standard property sale, you can take advantage of a tax exclusion if you have lived in the property in at least 2 years of the previous 5 years. What this means is, up to $250,000 of proceeds for a single homeowner is tax-free, and married couples can avoid paying taxes on up to $500,000 in proceeds.
Inherited properties can take advantage of the stepped-up tax basis. For inherited property sales, the tax basis is the fair market value of the property at the time of the owner’s death. If the home has appreciated tremendously over time, this avoids the heir from having to pay extraordinary income tax. Simply put, you don’t pay capital gains up to the point of the previous owner’s death. The only time appreciation comes into play on inherited properties is if you keep the property for some time, and the property increases in value while you (the heir) have owned it.
Proceeds from selling an inherited property are considered taxable income by the IRS. Fair market value is used to calculate the tax basis, or the amount that is subject to income tax. The IRS provides instructions and forms in this article.
To understand the difference between inheritance tax and estate tax, it may be best to consult the advice of your attorney or accountant. Understanding the tax implications of inheriting a home is sometimes a complicated task that is better suited for help from the professionals.
What is the Probate Process in Pittsburgh, PA?
In Pennsylvania, probate is the legal process that happens after a person (the “decedent“) dies. Whether your loved one had a will or not, probate may still need to be filed. Property is distributed according to the will, if there is a valid will available. Without a will, the estate’s assets will be distributed according to Pennsylvania probate law.
Probate isn’t always required after someone dies. Depending on how the property was held, probate can sometimes be avoided. If a property was held in trust or joint tenancy, you may not need to file for probate. It is best to consult a legal advisor to determine your responsibility for filing for probate.
Who Should I Contact To Sell My Inherited House?
Two parties you may consider contacting before you sell your inherited house are an appraiser, and an estate attorney. An estate attorney can guide you through the probate filing process, all the documentation needed, steps to open the estate and obtain an EIN number, and guide you through the process of closing and settling the estate. A real estate appraiser can help you determine the appraised value for the property, whether on a fair market assumption or an as-is basis if the property needs repaired.
Should I Sell My Inherited House As-Is or Fix it Up?
Some inherited properties may not need any work at all and can be sold directly on the market through a real estate agent if you so desire. Other homes, especially those that haven’t been updated or had necessary repairs done for some time, may need fixed up or renovated before attempting to sale. Another option you may have is to sell your inherited home as-is. This gives you the flexibility of receiving a fair offer for the house, without having to do any type of repairs, updates, junk removal, or cleaning. Determining which option is best for your situation may depend on your level of willingness to spend the time and effort necessary in fixing the home up, hiring contractors, and preparing the home for sale.
Selling An Inherited House in Pittsburgh to a Cash Buyer
We have helped many families sell their inherited property in Pittsburgh by offering a direct buy solution. We understand this may be an emotional and sensitive time, and selling your loved one’s home is probably the last thing you want to deal with during a difficult time. We can make you a cash, as-is offer for your inherited home, and close as quickly or as slowly as you are comfortable with.
By offering cash, and buying the property in as-is condition, we hope to help you eliminate many of the nuances and stress of selling your home on the market with a real estate agent. We also do not require to have you clean out the property, remove old furniture, make any repairs, and can even assist you in finding reputable companies to help you with an estate sale. Find out exactly how we make our offers, or more about us. If you’re ready to get started, please fill out the form below and we will contact you shortly!