re: What happens to homes when occupant passes?

quote:

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This is my lack of tax law but I’m assuming it’s an inheritance and at a large sum, there should be a large tax bill.

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It’s not. There is no inheritance tax under the value of something like 4 million. You pay cap gains on the difference in basis vs sold price, but the basis is the value of the property the day the person died. So it’s not usually much if any. With real estate fees etc the estate actually showed a capital loss in our case.