Selling a house you inherited may be something you never thought you’d have to deal with. For example, you might inherit a house from a loved one if they’ve passed on. This can be a welcomed addition to your investments, but it might be more of a hassle for you. So, you may decide it’s best if you sell that home. But you need to know how to do this and the ramifications of doing so before you choose to sell a house you inherited in Texas. So, here is a short guide for you to read through on what it looks like to sell a home you inherited in Texas.
Find Out the Background Information
The background information of the house you inherit includes a couple of things. One is that you need to find out how much the home is worth. One way to do this is by looking at similar homes in the area that have sold recently and how much they’ve sold for. Another thing you need to look into is the financial state of the home. This can affect the potential value of the property. It would help if you also were clear on who inherited the house. Are you the sole inheritor, or did other family members inherit the home with you? If you’re not the sole inheritor, you may need to “buy out” the others to proceed legally.
Tax Implications of Selling the Property
Texas doesn’t have an inheritance tax, but you could be on the hook for taxes related to proceeds made on the property sale. You’ll also be responsible for federal taxes based on the home’s value. The good news is that you can take advantage of the stepped-up tax basis. This means you won’t pay capital gains tax on anything before the loved one’s death. You’re only responsible from the point you become the legal owner of the house. Once the house has sold, you need to report the earnings to the IRS because they count inherited home sales as taxable income. Even if you don’t owe any taxes in the process, you should still report the sale to avoid issues down the road.
Prepare and Sell the Property
Once you’ve done all of the above, you’re ready to prepare the home for sale and sell it. This can include removing personal belongings from the home and figuring out what to sell the home for. Be prepared not to sell the house for your asking price. It depends on the market and who’s looking at the property, but this is always possible. For less hassle, you can sell the home to a cash buyer.
Selling a house you inherited in Texas has its complications, but it could also benefit you. So, no matter what you want to do with your new property, you should contact Flash Realty Solutions in Houston, Texas, for advice and help to manage and sell the home if that’s what you decide to do. Our expert realtors can help you with every step and make sure the process goes as smoothly as possible for you.
