Question:
My husband and I held our house as tenants-in-common. He died in 1988 and left his share to our daughter. I now wish to sell the house and move nearer to my daughter; she lives 100 miles away. Will she have to pay any tax on the sale?
Arthur Weller replies:
Yes, she will have to pay capital gains tax on her half of the house, based on the difference between the value in 1988 when she inherited from her father, and today's sale proceeds. I am making an assumption that she never lived in the house as her principal private residence, because if she did at one time, then that changes the picture considerably.
