Paying Capital Gains Tax When Selling an Inherited House in San Antonio

Home / ArticlesProbate / Paying Capital Gains Tax When Selling an Inherited House in San Antonio


Inherited House capital gains taxes; the basics

Capital gains taxes are basically taxes that you need to pay when selling an asset whose value has gone up. The tax is calculated basing on the difference between the prices you bought your asset for (also known as “basis”) and the price you sold it for. In this context, ‘basis’ is the amount the owner of the house bought it for. So when you inherit a house, you need to find out how much it was bought for so that when you decide to sell it later, you can easily calculate the capital gains taxes accrued so far.

When you inherit a house in San Antonio, its basis is equal to the market value if the house at the death of the owner. This is generally a huge tax advantage since it reduces the capital gains taxes you have to pay when you decide to sell it. The higher the basis the lower capital gains tax you will have to pay. In this article, we will be primarily talking about the ins and outs of inheriting a house, selling an inherited house and Paying Capital Gains Tax When Selling an Inherited House in San Antonio

How to Inherit a House in San Antonio Texas


Every state has its own laws and guidelines concerning just about anything. When it comes to inheriting a house in San Antonio, Texas, there are a few questions you need answering before finalizing the process. They will be probably mixed emotions too, a bittersweet moment of some kind. On one hand, you have just lost your loved one that you probably looked up to, on the other hand, you just found out that the deceased named you as the hire of their house.

One of the first things you need to find out is if the house has a mortgage. If the house has a mortgage, inheriting it can be quite overwhelming. You may want to find out if the mortgage can be assumed. This will depend on whether you are a relative to the deceased or not. If you are not a relative, in many cases, you will not be allowed to assume the mortgage. In which case, you may need to make arrangements for paying off the mortgage.

If you are inheriting a house from parents or a relative, you may receive a letter as a hire that will outline the details of the mortgage and ask you what your intentions are. If the house has a reverse mortgage, that is something else you need to give serious considerations. Either way, you will need to understand your responsibilities for other costs, and tax is one of them.

The main tax obligation you will have to deal with is the estate house. This bit can either be handled by you as the beneficiary of the estate or the executor of the will. This kind of tax is simply paid by filing a tax return to the Federal Tax department.

Generally, when inheriting a house in Texas, you need to find out about all the legalities that you should comply with. If you are thinking of selling the house sometimes later, all these matters have to be dealt with first. It may help to seek the advice of an expert to smooth things out a little faster.

Selling Your Inherited House in San Antonio


Before you sell your inherited house, as earlier mentioned, you need to first finalize all the financial and legal matters relating to transfer, mortgage, and taxes. The second thing you want to do is familiarize yourself with the property, especially if you intend to sell the house straight away. You might have spent most of your childhood in that home, but there might be a few things you are not familiar with.

Finding out how your home compares to others in the neighborhood and assessing the current market might help you figure out what the fastest ways to sell your San Antonio house are. You might want to hire a professional organizer to help you sort, empty and clean the house before the sale.

Realtors, Estate Sales, or House Buyers


You have three main options when it comes to selling your inherited house in San Antonio, TX; you can list it with an agent, auction it or use a cash buyer. Using a Realtor is a common practice, yet, this might not necessarily be your best option. Realtors cannot guarantee a sale and your home will stay on the market for several months. There is also the responsibility of insurance, tax, and utilities as well as the closing fees of the Realtor that may eat so much into your final pay.

Estate sales and auctions offer similar challenges as you are not guaranteed of the sale and you it will be costing you everyday your property is on the listing. And if your house sells any faster, it only means that you have compromised a lot and lost out on a significant sum. Selling your house to house buyers for cash is the simplest and quickest way.

The best part about selling your house to local, cash house buyers is that you will avoid prolonged waiting in the housing market. You also don’t need to spruce the house or fix any major issues; house buyers buy as it is. Unlike realtors, house buyers are experienced with inherited property and understand what it takes to deal with grieving homeowners.

Paying Capital Gains Tax When Selling an Inherited


Selling the house you inherited can trigger a capital gains tax. As earlier mentioned, you need to know the original cost of the property, and then calculate the new basis in order to know your capital gains at the time of selling. If you sell anything above the basis, you will make a profit which will attract Capital Gains Taxation. If you sell for the same value or less than the basis value, you don’t have to pay for the capital gains tax.

To Sum it All Up..


Paying Capital Gains Tax When Selling an Inherited House in San Antonio is clearly not as complicated as it may first sound. As long as you clear the legalities of inheriting the house, selling it should not be a hassle. All you need is to find a cash house buyer in San Antonio, TX that will offer the best valuation. Apart from easing the process, a house buyer can help you put your paperwork in order and handle your Capital Gains Taxes.


Let's Get Started on your Cash Offer Today.


5-star rating

Reviews Matter.

"We have worked hard to follow through on every transaction. We're not perfect, but we strive to acheive excellence." - Owner

Jeffrey Fuentes
Read More
These group of investors were really knowledgeable and helpful in getting our property sold with no hassle. Thank you Jill and Edgar for all your help in making this a quick and hassle free process. We appreciate you were always available to take our calls and that y’all were very professional.
Rebekah Hastings
Read More
We sold our home with this company and were overall pleased with the process and outcome. The process can be a bit of an emotional roller-coaster (this is primarily due to the nature of the market, not a fault of the company), but Edgar and his team did their best to make it as straight-forward and stress-free as possible. Be prepared to show your home to potential investors and marketers, and be aware that you will probably not receive market value for your home. But if you need to sell your home quickly and don't have the available cash to cover repairs and closing costs, this is the best route to go. We closed within 30 days of having reached out to House Buyer San Antonio, and the funds were transferred to us within 24 hours of closing.
Jennifer McKenzie
Read More
Edgar was very professional with great communication skills. He made the transaction run very smooth as it was a stressful time moving our mother out of her home and into a nursing home.
Maria Gonzalez
Read More
This company made the process of selling my home an extremely pleasant experience. I was very impressed and satisfied with the whole process. Thank you, Maria Gonzalez
Rick Comacho
Read More
Sal and the team were great. I was selling a house for my mom, and I was 1000 miles away. I made arrangements to meet several companies and Sal was the most prompt with returning calls and texts. Very important when you need to move quickly. He made an offer that worked and we got the house sold quickly. Selling a home is stressful and there was still stress, but it was mitigated by Sal's flexibility. God is good. Rick.
Ken Fries
Read More
Right from the get go response time was awesome. I filled out the information on the web site and received a response from somebody with in hrs. Sal took over and has help get us through the pain of selling my childhood home with ease. Gave us a excellent offer. Would recommend him to all that are trying to sell a home.

Let's Start on Your Blazing Fast Offer.


No Fees

Avg time to complete: 1 min.


5-star rating over 65 reviews”

Let's Get Started On Your Free Cash Offer


No Fees

Avg time to complete: 1 min.


5-star rating”