If you’re considering selling your inherited home, you might be wondering if there’s a holding period before you can do so. This article addresses that question and provides insights into what you need to know about the holding period, including details about probate, potential tax implications, and other factors that could affect the sale of your inherited home. Understanding these aspects can help you make informed decisions and navigate the process more smoothly.
There are a few things you should know to answer this question:
Is There A Holding Period Before Selling My Inherited Home
Probate Versus Inheritance
In general, an inherited property is what you get when someone passes away and leaves you their property. Probate is a stage along the way – it’s the step of proving the will and making sure that the right heir gets the right inherited property. This legal process can take several months to over a year, depending on the complexity of the estate and whether the will is contested.
Therefore, if someone leaves you a home and the house is in probate, you might not be able to sell it right away because the will is still being proved, and there could be other heirs contesting the will. It’s important to work closely with your probate attorney to understand the timeline and any legal hurdles you might face.
However, if probate is complete and you fully own the inherited house, then you can likely sell without waiting. Once you have clear ownership, you can move forward with the selling process, but it’s wise to consult with a real estate professional to navigate any remaining legal or tax issues.
There Is A Holding Period (But Not What You Think)
There is a holding period with inherited homes, but it doesn’t mean you can’t sell. It’s simply a term used to describe how you will be taxed on the property, and it depends on when the deceased passed away. The IRS uses the date of the decedent’s death to determine the fair market value of the property, which affects capital gains tax calculations.
In most cases, this won’t prevent you from selling the property, but you should talk to an accountant to see if the holding period will impact how much tax you pay. Understanding your tax obligations can help you make informed decisions and potentially save money in the long run.
There May Be Other Factors
While there isn’t likely going to be a holding period on the inherited home itself that will prevent you from selling it, you should be aware that there could be other holding periods that will make it more challenging to sell – such as if the house still has a mortgage or some other obligation. Outstanding debts or liens can complicate the selling process and might need to be resolved before you can complete the sale.
But in many cases, these can be sorted out and, in the long term, shouldn’t keep you from selling. It’s beneficial to get a clear understanding of any existing obligations and work with professionals who can help you address them efficiently.
So, if you inherited a house and are now thinking about selling it, and if you’re wondering, “Is there a holding period before selling my inherited home?” then here’s the good news: You probably don’t have to wait to sell, and you can get that process going right away. However, be aware that there could be other factors that may delay the sale or could impact the tax you’ll have to pay when you sell.
Here’s a fast solution for you: If you want to sell your inherited home as quickly as possible, give us a call! We’ll give you a fair, fast, all-cash offer to buy your inherited house as-is. We handle all the paperwork and complexities, allowing you to move on without any added stress.
Ready to sell fast in Bloomington? We’re ready to make you an offer right away. Just fill out the form below or call us at (800) 255-8250. Our experienced team is here to help you through every step of the process, ensuring a smooth and hassle-free transaction.