Selling a long-held or inherited property

If you have owned for decades, or you are selling something a parent left you, a few questions come before the price.

Who can sign?

If the property is in a trust, the trustee signs. If a parent passed away, an executor or a court may need to approve the sale. If several family members own it, all of them must agree. I help you find the right person early so the sale does not stall.

Your tax basis, in plain words

Your basis is roughly what you paid, plus improvements. The gain, which is what you may be taxed on, is the sale price minus your basis and costs.

If you bought it yourself long ago, your basis may be low and your gain large.

If you inherited it, the basis usually steps up to the value on the date the owner died. That is called a stepped-up basis. If you sell soon after at about that value, the gain may be small or none. This can change from case to case, so ask your CPA.

Get a date-of-death value

If you inherited, a written value as of the date of death helps your CPA. An appraisal is the usual way to get it. Do it before you sell.

Family and belongings

Long-held properties often hold furniture, tools and memories. I can recommend estate sale help and cleanout crews so you are not doing it alone.

A large gain?

If you bought long ago and the property is worth much more now, read Taxes when you sell: 1031, installment sale, and your net before you accept an offer. Some sellers keep more and still close.

General information, not tax or legal advice. Talk to your own CPA or attorney. Sample copy

More seller guides

• How we price and market a listing
• Timeline: list to close
• Preparing the property
• Comparing offers
• Taxes when you sell