Are there any tips for helping to avoid paying large taxes on the inheritance?
Planning has to be done prior to death. The owner of the property can give gifts prior to death, or can form a family limited partnerships, or can created a variety of complex trusts, such as grantor retained annuity trusts, qualified personal residence trusts and charitable remainder trusts to minimize large estate or inheritance taxes. While tool or technique should be used is highly dependent on the type of real estate, the other assets, the ages and health of the individuals, and other factors. What is involved if you decide to sell the inherited real estate property? How much will you have to pay in capital gains tax, etc.? Upon inheriting real estate property, you pay capital gains tax on the difference between what you net from the sale and your basis (purchase price plus improvements minus depreciation). Currently the federal capital gains tax is 15%. If it is a personal residence, and you meet the rules, you can exempt the first 250k from capital gains tax, if single, 500k if
