Taxes For Inherited Property

tax

For inherited property or gifted property, the holding period of the grantor usually travels with the property. Therefore it can be sold in a short time for capital gain. Inherited property gets a stepped up basis to market value. Gifted property can take the holding period of the donor and do a 1031 exchange, but you get the old basis. You can choose to take a stepped-up basis but get a new holding period.

 

 

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