Question

Filing capital gains on the sale of a inherited home in another state

Forum|Forum|1 year ago
March 15, 2025
2 replies
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we live in Texas inherited a home in Missouri and we sold that home in under a year. Trying to figure out where to pay the capital gains taxes on the sale of this home. Does it go in the federal or the state and where in those sections does it go using TurboTax home and business. Currently we put sale amount in the investment income on the federal under personal income, and it shows zero gains or losses, and we also put it in the state files for income and what we’re seeing is that the software is showing it’s being taxed in Missouri at a much lower % rate than we believe Missouri capital gains is 5%

M

MAK70

Missouri does not have special capital gains tax rate, it is just a progressive rate on state source income.

B

BlackcatimageAuthor

Do you know where you get the information for the property value on the date of death for an inherited house?

AmyC

Your local tax assessor or a real estate agent may have the information. The executor of the estate may have done an appraisal. The home may have appreciated tremendously or not at all before the sale and after the passing. You can add selling expenses to the basis.

Missouri is undergoing changes with their capital gains. It has been lowered and may cease to exist soon.

Reference: SB46 - Authorizes an income tax deduction for capital gains

I am sorry for your loss

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M

Mike9241

please be aware that the tax basis of the property is the value on the date of death. also under federal law, it automatically gets long-term capital gain treatment. For the acquisition date type in inherited.

the next issue. was it investment property after it was inherited? if it was you are taxed on any gain or get to deduct any loss. if it was not, any gain is taxable but any loss is not deductible (for example you used it for personal purposes). i