I am totally blown away trying to sell a house I purchased 4 years ago at PA Judicial sale. I was taught that a judicial sale will wipe out all leins except federal. I have found that information is totally misleading. Not only do I have to do the quiet title against the heirs, but also the city and school district have a lein on the house for all the back taxes that led to the sale before the house even belonged to me, and I have to pay to have this quiet title brought against them to have the lein released.
PLUS, because the former owners passed away and the heirs did not open an estate at the time of the last heirs death, Pennsylvania is saying that I have to pay the inheritance tax on the property, PLUS interest, per my attorney, to the tune of $13,168.
"The $13,168.84 figure is calculated as follows: $18,000 assessed value x 3.23 date of death CLR = $58,140 property value x 15% collateral tax rate as the property went to the unrelated LLC. = $8,721.00 tax liability. Interest due on that amount totals $4,447.84, resulting in a total due of $13,168.84"
Honestly, this is beyond ridiculous. I can't understand how the state can get away with charging me inheritance tax on a house that I not only didn't inherit but paid for. Plus they will get their transfer $$ at the time of the sale.
Does anyone have experience with this? What can I do to eliminate this inheritance tax?
Thanks,
Jeanni