Posted on: 16th Nov, 2011 03:07 pm
If Mom quit claims her house to me (no money involved), do I have to pay income tax on the value of the house? What about taxes when I sell it?
You are allowed to receive gifts without taxes, but it has a limit on the amount of gift. I believe that a parent can gift 500k or 1M to son/daughter. Forgot the correct amount. I would just call the IRS, they are actually very easy to work with and will help answer your questions. Once you sell the home, you may have to pay capital gains, but that also depends on the amount you receive and if you purchase another home after the sale. Good luck!
Hello papajoe,
If an income tax were considered a direct tax, it would be unconstitutional since it could not be apportioned. Second, even if an income tax were considered an indirect tax, it still needed to be “uniform†and had to fulfill a variety of other constitutional requirements. The latter requirement was interpreted to apply only to geographic uniformity and was held not to require that a tax be uniform as applied to different individuals with different income levels.
:idea:
If an income tax were considered a direct tax, it would be unconstitutional since it could not be apportioned. Second, even if an income tax were considered an indirect tax, it still needed to be “uniform†and had to fulfill a variety of other constitutional requirements. The latter requirement was interpreted to apply only to geographic uniformity and was held not to require that a tax be uniform as applied to different individuals with different income levels.
:idea:
