Contemplating the sale of your inherited property may lead you to ponder, “Is there a holding period before selling my inherited home?” This article aims to address that question, and you may find the answer to be surprising.
Inheriting a property can be a significant life event, and deciding what to do with it can be a complex process. If you’re considering selling the inherited home, you might be wondering if there’s a minimum amount of time you need to hold onto it before doing so. This is a common concern, and understanding the holding period for inherited property can help you make informed decisions about the sale.
There’s good news in terms of holding periods. Unlike other assets, inherited property doesn’t have a specific holding period requirement to qualify for long-term capital gains tax treatment. This means you can sell the house whenever you’re ready without worrying about short-term capital gains taxes, which are typically less favorable. Let’s delve deeper into some of the specifics to consider when inheriting and selling a property.
Is There A Holding Period Before Selling My Inherited Home
Probate Versus Inheritance
Typically, an inherited property is acquired when someone passes away and bequeaths their property to you. Probate is a crucial stage in this process, involving the validation of the will and ensuring that the rightful heir receives the designated inherited property.
Therefore, if someone leaves you a home and the house is in probate, you might not be able to sell it right away because the will is still being proved and there could be other heirs contesting the will.
However, if probate is complete and you fully own the inherited house, then you can likely sell without waiting.
There Is A Holding Period (But Not What You Think)
There is a holding period with inherited homes but the holding period doesn’t mean you can’t sell… it’s simply a term used to describe how you will be taxed on the property – and it depends on when the deceased passed away.
However, in most cases, this won’t prevent you from selling the property but you should talk to an accountant to see if the holding period will impact how much tax you pay.
There May Be Other Factors
While you don’t have to wait a specific amount of time before selling an inherited house, there might be other holding periods to consider. For example, if the house has a mortgage, you might need to follow the terms of that loan before selling. There could also be other outstanding obligations tied to the property that need to be settled. The good news is that these hurdles can often be addressed. By working through any loan requirements or outstanding issues, you should be able to achieve your goal of selling the house in the long run.
If you find yourself in the situation of inheriting a house and considering its sale, along with the question, “Is there a holding period before selling my inherited home?” here’s the positive news: There’s likely no mandatory waiting period, and you can initiate the selling process promptly. Nevertheless, it’s important to note that other factors might introduce delays or influence the tax implications associated with the sale.
Here’s a fast solution for you: If you want to sell your inherited house as quickly as possible, give us a call! We’ll give you a fair, fast all-cash offer to buy your inherited house as-is.