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Tax consequences when selling a house I inherited in Louisiana

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Tax consequences when selling a house I inherited in Louisiana
Learn the Tax consequences when selling a house you inherited in Louisiana.

When you inherit a home, it can bring up a lot of different feelings. You now have a perhaps valuable property that could improve your life, but you also just lost someone near and dear to you. If you’re deciding what to do next, it’s important (and wise) to know how taxes come into play when selling an inherited property. The good news is that tax laws are generally designed to not place additional burdens upon the person who inherits property. Usually, the money side of things isn’t as scary as you may think, which is good news for you.

Disclaimer: This article is just general information. We are not attorneys. You should always consult an attorney or financial advisor knowledgeable about this area of the law about your particular situation.

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Tax Consequences when selling a house I inherited in Louisiana, LA

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Taxes on the property you inherited in Louisiana are likely not as much as you feared.

Calculation of basis
To understand how taxes work when you inherit a home, you should learn about basis. Basis is the starting value of the property used to calculate taxes like capital gains. When someone passes away, the value of their property in Louisiana is adjusted to what it was worth the day they died. For example, if someone bought a home long ago for $25,000 but it was worth $100,000 when they passed away, that’s the value used to figure out taxes like capital gains.

Taxation of gains/losses

Capital gains or losses are what you get from selling things like property you use for yourself or investing. This could include things like houses, furniture, and more. When you sell an inherited home in Louisiana, it’s counted as either a capital gain or loss for income tax purposes. Usually, to qualify for lower tax rates on long-term gains, you need to have owned the property for at least a year. No matter how long you’ve had the inherited home, any profit or loss is seen as long-term for taxes.

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Reporting the sale

When you sell a home you inherited, you must report it to the IRS. First, figure out if you gained or lost money. You do this by taking away the basis (see above) from the selling price. Then, you report that amount to the necessary authorities.

It can be tough inheriting a home because you suddenly have a new property to look after and taxes to pay. The first thing to do if you want to sell your home is to go through the probate process in Louisiana. At the end of this process, the court gives you the green light to sell. If there are others who inherited the property with you, you need to come to an agreement with them. Then, you can ask the court for permission to sell by filling out a form.

After that, you should consider how much tax you’ll need to pay. The amount depends on whether you made money or lost money from selling the house. If you want an easy and legitimate sale of your home, call us at Louisiana Direct Home Buyers at (504) 732-1988. We know the Louisiana marketwell and can help. If you’re still unsure about details when selling an inherited house in Louisiana, we’re here to talk through it more with you.

Selling a home you inherited can relieve you of quite a burden. It’s also quick and simple to sell to an investor. If you need help selling your home in Louisiana, just contact us, and we’ll be happy to help you.

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Louisiana is a low death tax state!

Louisiana Estate Tax

Great news! Louisiana has no estate tax!

Louisiana Inheritance Tax

Great news! Louisiana has no inheritance tax!


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Learn the tax consequences of inheriting a house in Louisiana.
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Disclaimer: This article is just general information. We are not attorneys. You should always consult an attorney or financial advisor knowledgeable about this area of the law about your particular situation.

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