Q. My mother-in-law died in March. We’re in the process of selling her house, which she bought 10 years ago for about $75,000. We believe the property is now worth about $125,000. Will we have to pay [tag]capital gains tax[/tag]es on the sale? If so, how much will we owe?
A. Your mother-in-law was entitled to pass down $2 million in her estate tax-free this year. Assuming that you inherited her property, you inherited it at its [tag]current market value[/tag], approximately $125,000. That amount is counted toward her estate. As long as the estate is valued at $2 million or less, you can sell the property and keep the proceeds tax-free. For more details, consult your estate attorney.