Taxes on inherited property

[Ronald H.]

I inherited my Mom's home and the deed was passed to me one year ago this month. The home needs a lot, and I have been considering selling.

From what I am reading, I would have to wait until next June of 2015 to be in exempt status to Capital Gains. Am I correct?

[Jon Holdman]

Perhaps @Steven Hamilton II can provide info on what proof the IRS expects for showing a house has been your primary residence.  If you're truly living there, pay the utilities, have that address on your car registration and drivers license and get your mail there I wouldn't think you will have a problem.  

It shouldn't be too hard to go back and pull comps from shortly before her death and determine a market value.  This is a really important number to you, so I would figure it out ASAP.  Then, knowing your taxable gain (potential sales price, less selling costs, less your costs basis (value on the date of her death)) you can make a better decision about how to proceed.  Unless something dramatic has happened with values in your area in the last year I doubt you have much of a taxable gain.  I've read news stories that values are up 12% here year over year.  Even if you have a gain like that the selling costs will each up a bunch of your gains and you tax bill will be minimal.