Disclaimer: (we are not tax consultants)
Sell My House Fast Washington, Cash For Houses Washington, We Buy Houses Washington
Inheriting property comes with many responsibilities—and when it comes time to sell a house in probate, understanding the tax implications is crucial.
In Washington State, homeowners navigating probate often face confusion around capital gains, estate taxes, property taxes, and who’s responsible for what. If you’re the executor or a family member trying to sell a home after a loved one’s passing, this guide will walk you through the most common tax questions.
At REI Branded Home Buyer, we help people across Washington—including Spokane, Seattle, and Yakima—sell inherited houses quickly and easily. Here’s what you need to know about the tax side of probate sales.
1. Do I Have to Pay Capital Gains Tax When Selling a Probate House?
This is one of the most common questions—and the answer depends on timing and value.
If you sell the property shortly after inheriting it, you likely won’t owe much in capital gains tax thanks to what’s called a “step-up in basis.”
🧾 What is Step-Up in Basis?
Step-up in basis means the property’s tax basis is adjusted to its fair market value (FMV) at the time of the original owner’s death.
Example:
- Your parent bought the house for $100,000 in 1995.
- They pass away in 2024, and the home is worth $350,000.
- You sell it soon after for $355,000.
You would only pay capital gains tax on the $5,000 difference—not the full appreciation from $100,000 to $355,000.
If you hold onto the property and it increases significantly before you sell, then you may owe capital gains tax on the appreciation since the date of death.
2. Do I Have to Pay Estate Taxes in Washington?
Washington is one of the few states that has a state-level estate tax, separate from the federal one. However, most estates don’t meet the threshold for taxation.
💰 2025 Washington Estate Tax Threshold:
- The first $2.193 million of an estate is exempt.
- Estates valued over this amount may owe between 10% and 20% in estate taxes.
If the estate includes other assets (like retirement accounts, investment portfolios, or business holdings), and the total value exceeds $2.193 million, an estate tax return may be required. The estate—not the heirs—pays this tax before distribution.
3. Will I Have to Pay Income Tax When Selling a Probate Property?
No. Selling a probate home is not considered income. You only pay capital gains tax on the difference between the home’s sale price and the step-up basis.
Heirs do not owe regular income tax on the proceeds of a home sale unless:
- The property was used as a rental and generated income.
- The home increased significantly in value after the date of death and you held it for a long time.
4. Can I Deduct Repairs, Cleaning, or Selling Costs from Capital Gains?
Yes. When calculating capital gains from the sale of a probate property, you can deduct:
- Real estate agent commissions
- Legal and closing fees
- Repair and cleaning costs directly related to preparing the home for sale
These deductions reduce your taxable gain.
5. What if the Probate House Still Has a Mortgage or Property Taxes Owed?
You’re not personally responsible for the deceased’s debts—but they must be paid from the estate before any inheritance is distributed.
This includes:
- Mortgage balances
- Back property taxes
- Utility bills
- HOA dues
- Medical debts
If the home is sold, these debts are typically paid at closing. That’s why many executors choose to sell the home quickly—especially if there are ongoing property expenses draining the estate.
6. What About Selling a Probate Home to a Cash Buyer?
Selling to a professional cash home buyer like REI Branded Home Buyer makes the probate process faster and simpler.
We purchase inherited properties as-is across Washington, even if:
- The home needs major repairs
- The estate is still in probate
- There are title issues or unpaid taxes
And because we don’t rely on lenders or appraisals, we can close in as little as 7 to 14 days—often before bills pile up.
7. Do I Need to Wait for Probate to Sell the House?
In most cases, yes. The executor or personal representative needs legal authority from the probate court to sell real estate.
However, there are exceptions:
- Small estate affidavits (if the estate is under a certain value)
- Joint tenancy with rights of survivorship may allow a surviving owner to sell without probate
- If you have Letters Testamentary or Letters of Administration, you can move forward with a sale during probate
We always recommend working with an estate attorney to confirm your specific rights before listing or selling a home.
How REI Branded Home Buyer Helps with Probate Sales
We’ve worked with many families in Washington going through probate. Here’s how we simplify the process:
✅ Buy homes in any condition—even vacant or outdated
✅ No real estate commissions or closing costs
✅ Flexible closing timelines
✅ Experience with inherited properties and probate timelines
✅ Help clear out belongings if needed
If you need easy home buyer solutions, we’re ready to help you move forward.
FAQ: Taxes and Probate House Sales in Washington
Q: Will I owe taxes if I sell a house I inherited in Washington?
A: You may owe capital gains tax, but the step-up in basis usually minimizes this. Most heirs pay little to no tax if they sell soon after inheriting.
Q: What’s the difference between estate tax and capital gains tax?
A: Estate tax is paid by the estate if it exceeds $2.193 million in Washington. Capital gains tax is paid on profits when the heir sells the property.
Q: Can the estate pay off debts before I sell the house?
A: Yes. The estate is responsible for paying all valid debts before heirs receive distributions or sell assets.
Q: Do I need to file a special tax return after selling a probate house?
A: You may need to file a Schedule D for capital gains on your personal tax return. Always consult a CPA for accurate guidance.
Q: Can I sell a house still in probate?
A: You can sell during probate if you have court authorization (such as Letters Testamentary). We work with sellers throughout this process.
Sell Your Inherited House in Washington — The Simple Way
Selling a probate home doesn’t have to be complicated. If you’re dealing with inherited property in Spokane, Seattle, Tri-Cities, or anywhere in Washington, REI Branded Home Buyer is here to help.
📞 Call 509-769-3439 or visit reibrandedhomebuyer.com to request a fair cash offer. No fees, no delays, and no obligations.
Sell Your Washington House Fast Today
About REI Branded Home Buyer
Real People. Real Stories. Real Solutions. We’re George and TJ — two regular guys who teamed up to create REI Branded Home Buyer, a local company with one simple mission: to help people sell their homes without stress, games, or pressure. We actually met at a local real estate meetup. A mutual friend randomly shouted, “Hey George, do you want to be this guy’s mentor?” George laughed and said, “Just give him my cell!” A coffee meeting later, and the rest is history. We've been working together ever since. Our passion for helping homeowners comes from personal experience. George was once homeless, so he deeply understands what it’s like to face housing uncertainty. TJ’s family went through a crisis and had to sell their home fast — with the help of a cash homebuyer. Those experiences shaped who we are and inspired us to create a company that treats people the way we wish we’d been treated. Let’s be real: the real estate world is full of shady companies, pushy salespeople, and sleazy homebuyers who care more about profit than people. We started REI Branded Home Buyer because we believe it should be the other way around — people first, profit second. We’re proud to call Spokane home. Our wives, Jenny and Michelle, love the slower pace of life here and all the outdoor beauty Washington has to offer. George and Jenny have two amazing daughters and two dogs — they love to travel and recently visited Japan to see their daughter abroad. TJ and Michelle are outdoor lovers through and through — backpacking, hiking, hunting, fishing, even rock climbing. Michelle’s become quite the mountaineer! If you’re thinking about selling a house — no matter the reason — we’d love to hear your story and see how we can help.