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What would the tax be on real property valued on a stepped up basis of 1million dollars?

Property has basis from 1973 low basis; opinion of value is i million.

Public Comments

1. Dear Jill: Tax? Property tax or gain on sale of property? If it is a gain of $1M it would be long term and the capital gain rate for '10 is "0" or 15% depending on your marginal tax rate. Max tax of $150K. Other factors must be considered, value of any land, depreciation of any property, etc. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
2. Assuming that this is inherited property any sale will result in a long term gain or loss. The gain or loss is determined by determining the difference between the basis and the sale price minus cost of sale. So a property with a basis of $1million that sold for $1.2million with a cost of sale of $100k the taxable gain would be $100k taxed at the individuals capital gain rate. The basis is best established by a certified appraisal as of the date of death of the decedent(if that is the reason you might get a stepped up basis) not an "opinion"