04/29/2022
Typically when you sell a home for more than you paid for it, you have to pay capital gains tax. It can range from zero to 20%, depending on your income. However, if you inherit a house and sell it later, you will pay capital gains tax based on the value of the home on the date of the owner’s death. So what happens if you renovate the house—say, update the kitchen, redo a bath, or make other improvements to the property you inherited before you sell it? The good news is that you can use those improvements to reduce your tax bill and potentially increase your profit. As a result, if you decide to make updates, you can subtract the amount you spend from any capital gains taxes you owe when selling the property. So keep track of those receipts!
https://www.realtor.com/advice/sell/profits-sale-inherit-a-house/
