If you find yourself acting as executor of a will, the burden of selling an inherited property in Atlanta will fall to you. It’s both a blessing and a challenge. You need to understand Georgia tax laws, including inherited house capital gains tax, the probate process, and how to navigate through possible family disagreements about the inherited property, before getting to the actual sales process.
Federal inherited house capital gains tax in Georgia
While most assets in the state of Georgia are based on their original price, fortunately a “stepped-up basis” is used by the federal government on inherited property. The property is valued at its current market value at the time of inheritance.
Georgia taxes when selling an inherited house in Atlanta
According to Houzeo, “you need to pay transfer tax and property tax when selling an inherited property in Georgia. The average property tax in Georgia is 0.81% of the total sale price of the property.” Transfer tax is at the rate of $1.00 per $1000.00. Georgia does not have an inheritance tax.
What is the probate process before you sell an inherited house in Atlanta?
Before you sell your inherited house in Atlanta, it must go through probate. According to Investopedia, “Probate is the process completed when a decedent leaves assets to distribute, such as bank accounts, real estate, and financial investments. Probate is the general administration of a deceased person's will or the estate of a deceased person without a will.” In other words, probate is about authenticating the will, or in absence of a will, authenticating agreement between the heirs as to the distribution of the property.
If there is disagreement among the heirs, probate should go into negotiation and if that fails, to court.
How to sell an inherited house in Atlanta
Typically, most heirs decide to sell their inherited house in Atlanta, because choosing to keep the house often ends up being too expensive or they don’t live in the same area. Selling an inherited property in Atlanta can be done through a real estate agent or FSBO (for sale by owner), but if the house needs a lot of repairs or if selling quickly is important, there is another hassle-free way to sell. HomeVestors® in Atlanta buys houses in all sorts of conditions, saving you money on repairs and alleviating stress.
