Introduction

If you’re searching for ways to avoid taxes when selling an inherited property in Fayetteville, NC, you’re likely feeling a mix of confusion and urgency. The process of inheriting a property often comes with emotional weight, especially if it’s tied to a loved one who has passed. But alongside the emotional aspects, there’s the reality of taxes—capital gains taxes, inheritance taxes, and other potential fees that can eat away at the value of your inheritance. You might be wondering, “How can I keep more of the proceeds from this sale?” or “What are my options for selling this house without losing a chunk of it to the government?” This blog will provide answers to those questions, giving you clear insights into how to avoid or minimize taxes when selling your inherited property and why selling to a real estate investor might be your best option.

How to Avoid Taxes When Selling an Inherited Property in Fayetteville NC

Selling an inherited property can feel like a double-edged sword—while you might be eager to liquidate the property and move on, the looming question of taxes can make the situation more complicated. Understanding how taxes work when selling an inherited property in Fayetteville, NC, is crucial if you want to keep more of the sale proceeds in your pocket. In this post, we’ll break down the types of taxes that may apply, strategies to minimize them, and why selling your inherited home to an investor could be the best option to avoid paying more than you should.

Learn more about North Carolina property taxes

Understanding Capital Gains Taxes on Inherited Properties

What Is Capital Gains Tax and How Does It Apply to Inherited Property?

When you inherit property in Fayetteville, NC, the property is generally not subject to immediate taxation. However, when you sell it, you could be subject to capital gains tax on the profit from the sale. Capital gains tax is calculated based on the difference between the sale price and the “stepped-up” value of the property at the time of inheritance. This means the property’s value is re-assessed to its current market value on the day of the previous owner’s death, not the original purchase price.

For example, if your late relative purchased the house for $100,000 and it is now worth $250,000 at the time of their passing, you would be taxed on the gain of $150,000 when you sell. The tax rate for long-term capital gains on inherited property is generally 0%, 15%, or 20% depending on your income level. In Fayetteville, if your taxable income is higher, you could face the 20% rate, which could result in a significant tax bill.

How to Minimize Capital Gains Tax

There are a few strategies you can use to reduce the capital gains tax burden when selling an inherited property:

1. Holding Period Advantage: When you inherit property, the IRS treats it as though you’ve held it for more than one year. This means that any gain from the sale is taxed at long-term capital gains rates, which are generally lower than short-term rates.
2. Use of Tax Deductions: You can subtract certain selling expenses like repair costs, agent commissions, and other fees from the capital gain, thus reducing the taxable amount.
3. Selling to an Investor: Selling the property to a real estate investor might be advantageous because investors typically handle many of the costs associated with the sale, such as repairs and closing fees. This could leave you with more cash in hand after the sale.

By understanding these nuances, you can minimize your tax exposure and ensure you’re not paying more than necessary. If you’d like to dive deeper into the full selling process for inherited properties, be sure to check out our How to Sell an Inherited House Fast in North Carolina page.

The Potential for Inheritance Taxes in North Carolina

Are Inheritance Taxes an Issue in Fayetteville, NC?

North Carolina does not impose an inheritance tax, meaning that you won’t have to pay taxes just because you’ve inherited property. However, some states impose inheritance taxes, so you should always check the specifics if your inheritance ties to another state.

This might relieve some of the stress associated with the property transfer, but don’t forget about federal estate taxes. If the estate’s value is significant enough, the estate itself could be subject to taxes before the property is even passed down to you. The federal estate tax exemption is quite high (over $12 million in 2025), so it’s unlikely to affect most people in Fayetteville.

Why Selling to an Investor Might Be Your Best Option

If you’re looking to sell your inherited home without the stress of taxes, repairs, and long waiting periods, selling to a real estate investor could be your best bet. Investors typically offer a fast, as-is sale, and you could avoid many of the complications of traditional home sales. Plus, you won’t have to worry about waiting for a buyer or paying for renovations.

For more insights on how selling to an investor can help you navigate the complexities of selling an inherited property, check out our Fastest Way to Sell an Inherited House in Greensboro NC ‘As-Is’.

Costs Involved in Selling an Inherited Property in Fayetteville, NC

What Are the Costs When Selling an Inherited Property?

When selling an inherited property, there are several costs you should be aware of:

1. Agent Fees and Commission: Typically, real estate agents charge a 5-6% commission on the sale price. If your property sells for $250,000, you could pay up to $15,000 in commissions.
2. Repairs and Renovations: An inherited home might need repairs before it can be listed on the market. Minor repairs can cost a few thousand dollars, while major renovations (e.g., replacing the roof, plumbing, or HVAC) could run tens of thousands of dollars.
3. Closing Costs: Closing costs generally run around 2-5% of the sale price. On a $250,000 sale, that could add up to $12,500 or more.

Why Selling to an Investor Can Save You Money

When you sell to a real estate investor, these costs are often waived. Investors typically buy properties “as-is,” meaning you don’t have to make repairs. Additionally, they usually cover closing costs and offer fast, cash-based transactions, helping you avoid many of the fees associated with traditional real estate transactions.

Conclusion: Why Selling to Eagle Home Partners May Be Your Best Option

Selling an inherited property can be an emotional and financially complex process, but with the right approach, it doesn’t have to be overwhelming. While you may be considering traditional routes to sell your home, it’s important to weigh the costs—repairs, agent commissions, and lengthy waiting periods. At Eagle Home Partners, we specialize in making the sale of your inherited property as easy and efficient as possible. We buy homes “as-is,” meaning you don’t have to worry about costly repairs or renovations. Plus, we cover all closing costs and offer a fast, cash-based transaction, so you can avoid the long delays typical of the traditional home-selling process.

Choosing to sell your inherited home to Eagle Home Partners can help you avoid unnecessary taxes and fees, providing a stress-free way to move forward. While you may not get the full market price for your property, the savings in time, money, and hassle can make the difference, especially when you need to sell quickly. Let us help you navigate this process and ensure you receive a fair and timely offer.

Contact Eagle Home Partners today to get a no-obligation cash offer for your inherited property.