Did you inherit a house? 

Inheriting a house can be a mixed bag of emotions. While it may come with sentimental value, it also brings its own set of responsibilities and decisions. You may find yourself wondering about the best course of action if you can't or don't want to keep the inherited property.

Many people who inherit a house find themselves without a clear understanding of what steps to take next, so comprehending the different aspects of inheriting a house is important. If you’d like to sell your inherited house, you need to know what taxes you may need to pay, what your selling options are, and how We Buy Ugly Houses^® can help.

What tax implications come with inheriting a house?

If you inherited a house, you generally don’t owe taxes until you decide to sell the property. When you sell an inherited house, you will owe something called a capital gains tax.

Capital gains taxes are calculated using a method known as the stepped-up cost basis. A stepped-up cost basis means that you will pay taxes only on any appreciation that has occurred since you have inherited the house. 

Depending on the state you live in, you may need to pay inheritance tax. The states that impose an inheritance tax are Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. 

What if you want to sell? 

If keeping your inherited house isn't the right choice for you, selling it is a viable option. This is particularly true if you live out of state or far away from the house, which makes property management and maintenance challenging. 

Selling your inherited house can help eliminate many of the financial responsibilities that come with the property. And when you choose to sell with We Buy Ugly Houses, you also get to avoid many of the upfront financial responsibilities that come with selling a house in general.

How do you sell an inherited house?

When it comes to selling an inherited house, here are two great options: 

• Sell with an agent: The traditional home-selling process is one method that involves listing the property on the market, working with real estate agents, and navigating negotiations with potential buyers. However, this may not be suitable for everyone, especially if you don’t live in the same area as the property.
• Sell to We Buy Ugly Houses: An alternative option is selling to an off-market home buyer like We Buy Ugly Houses. Direct home buyers like us streamline the selling process, and we offer a quicker and more straightforward sale. This option is particularly helpful for those who want to avoid the lengthy and sometimes uncertain traditional selling process.