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Thumb of Michigan | I hope you had a licensed appraiser, appraise the property 10 years ago (should've been done within 6 months of death, so you could use "alternate valuation date"). Realtors do a free "market study" which some folks think is an appraisal, a license appraiser will charge you for their services.
The difference between the appraised value and the net selling is subject to capital gains taxation (long-term, being you held it for more than one year). Your capital gains taxation rate will depend on your total income for the year (capital gain rate is up to 20% for 2024 tax year). I suggest you talk to your CPA, BEFORE entering any selling agreement. There are strategies that can be used to lower you tax bill, IF you desire (installment sale as an example). | |
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What to expect when reselling a property for a profit????
