Tax on 2nd home we never lived in

My mother and father gave us there home and we just sold it for 80,500. How much tax will we have to pay. We have never lived in the home and it is recorded we paid 1.00 for the home 5 years ago.

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Submitted 353 days ago...

meltdown0011

Beginner (73)

Unless you live in a house for 2 years, you'll probably have to pay Capital Gains tax. Since you owned the home for more than a year, it would be considered a long-term capital gain. A Certified Public Account specializing in taxes can help you formulate the tax you'll pay based on your circumstances.

I would highly recommend hiring a CPA to file your taxes. CPAs usually charge only a couple hundred dollars to file an individual tax return. Often, what they can save you in tax deductions pays for their fee.

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