My brother and I are selling off a house and out buildings off the farm we inherited several years ago. We have rented the house out for years and ready to sell with a few non tillable acres. Anyone knows how the capital gains work? Thanks
In Texas and I think everywhere you have to have lived in it as your primary residence within the last two years to avoid the CG's. I don't know about the rest of the country but in Texas it also counts if you've "homesteaded" it within the last two years. That's how it was explained to us when we sold our last house.
On an inheritance I think your cost basis is the value at inheritance. If the value of money has decreased since then, you'll owe taxes on the current value or the real estate, I think.
