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If you sell the inherited property, you are liable for 50% tax of the capital gain (subject to lifetime maximums) Capital gains are calculated by subtracting the fair market value at the time of acquisition from the current sale price.
How to Determine Estate Value Figure out how much everything is worth. That includes real estate, vehicles, insurance policies, personal items and anything else your loved one owned. Subtract the value of any assets that don't have to go through probate. ... Carry out the simplified probate process.
Generally, the Gross Estate does not include property owned solely by the decedent's spouse or other individuals. Lifetime gifts that are complete (no powers or other control over the gifts are retained) are not included in the Gross Estate (but taxable gifts are used in the computation of the estate tax).
Gross estate includes essentially all substantially valuable property owned by the person at death, including real estate, cash, stocks, life insurance, jewelry, furniture, and owed debts.
Like many people, you may not have considered this before and so may be left wondering what your 'estate' actually consists of and how you are supposed to put a value on it. To find out how much your estate is worth you need to calculate the value of your assets, then minus your liabilities.