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Depending on what's included in the probate inheritance and what you do with it.

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One way to avoid tax completely is to never inherit at all If you do this you're said to disclaim your inheritance You file a written statement with the estate executor saying you don't want the property and it passes to the next heir in line Legally you've never owned it so there's no tax bill for you.

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Do you pay capital gains tax if you inherit a house Typically when you sell a home for more than you paid for it you have to pay capital gains tax It can range from 0 to 20 depending on your income Your capital gain on your home sale is determined by subtracting the purchase price from the home's current value.

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The basis of property inherited from a decedent is generally one of the following The fair market value FMV of the property on the date of the decedent's death whether or not the executor of the estate files an estate tax return Form 706 United States Estate and Generation-Skipping Transfer Tax Return.

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