When a loved one passes away, their estate often goes through probate, the legal process of settling their affairs. If the estate includes a home or property in Oro Valley, Arizona, one of the most important things to understand is probate taxes. While it may sound complicated, the basics are fairly simple.
What Are Probate Taxes?
Probate taxes refer to the taxes that might need to be managed during the probate process. These include:
- Property taxes – Must continue to be paid while the estate is in probate.
- Capital gains taxes – May apply if the property is later sold for more than its adjusted value.
- Federal estate taxes – Only apply to very large estates (most families in Oro Valley will not owe these).
- Arizona state taxes – Arizona does not have inheritance or estate taxes.
How Probate Taxes Affect Oro Valley Real Estate
If the estate involves a home or land in Oro Valley, here are a few things to know:
- Stay current on property taxes. Missing payments could lead to penalties or liens.
- Step-up in basis can reduce taxes. The home’s value is reset to fair market value at the time of inheritance, which usually lowers capital gains taxes when selling.
- Court approval may be required. If the property is sold during probate, the court must approve the sale, and taxes must be cleared first.
Tips for Handling Probate Taxes in Oro Valley
- Make sure property taxes are paid on time.
- Consult a tax professional for advice on federal tax obligations.
- Work with a local Oro Valley realtor who understands probate sales and can help simplify the process.
Work with a Probate Realtor in Oro Valley
Probate can feel overwhelming, but you don’t have to go through it alone. With the right guidance, managing probate taxes and selling a home in Oro Valley can be much easier.
Contact Ryan Comstock – Oro Valley Realtor
📞 Phone: 520-261-4669
📧 Email: ryancomstock@ryancomstock.com
🌐 Website: www.ryancomstock.com