Posted on: 12th Feb, 2006 04:29 pm
My house is on the market now. After the house is sold I'll be moving into my parents summer home (not thier primary home and not in the same state we all live in), there is no mortgage on this house. I 'll be buying it from them with some of the money I make on the house being sold. What is the best way to go about this without them getting hit with capital gain? Can we go with a quitclaim deed,and can I just put the money in a joint saving account in both my parents and myself names so no taxes will be paid on the money?
Thanks
Steve
Thanks
Steve
you can get your name on the title of the property through a quit claim deed. i don’t have much idea on whether you will able to save taxes on the capital gains after selling your house. a real estate attorney can be the right person to tell you about this.
zeal_deal
zeal_deal
hi
"What is the best way to go about this without them getting hit with capital gain?"
I don’t think there is any other way than capital gain to sell the property. Whenever, we are going to sell any property, the income earned from it is our capital gain. And I think maximum of 15% tax charged on your capital gain.
"Can we go with a quitclaim deed"
As per my opinion, you can go for quit claim deed so that you can change the title of ownership of your name.
"can I just put the money in a joint saving account in both my parents and myself names so no taxes will be paid on the money?"
Regarding your payment, I think you just put the money into their saving account shows it as a gift.
"What is the best way to go about this without them getting hit with capital gain?"
I don’t think there is any other way than capital gain to sell the property. Whenever, we are going to sell any property, the income earned from it is our capital gain. And I think maximum of 15% tax charged on your capital gain.
"Can we go with a quitclaim deed"
As per my opinion, you can go for quit claim deed so that you can change the title of ownership of your name.
"can I just put the money in a joint saving account in both my parents and myself names so no taxes will be paid on the money?"
Regarding your payment, I think you just put the money into their saving account shows it as a gift.
Not a bad idea. You can always do this no problem.
Yes and when you are all responsible for all the loan then its good to pass on the information.
Thanks
Yes and when you are all responsible for all the loan then its good to pass on the information.
Thanks
So let me ask you all something, just to make sure I got it right! I was told that, lets say I sold the house for 350 thousand $$ and I own the bank 100 thousand $$ so that means that I will be walking with about 235 thousand$$ ( after the realestate people gets their) that I didnt have to pay any taxes on this money, even if I didnt turn around and invest it into another home. Did I understand this right? Anything under 250 thousand$$ no capital gain??
Thanks
Steve
Thanks
Steve
Hi,
See its not the money you receive for the sale of your home, but the amount of gain on the sale over your cost, or basis, that determines whether you will have to include any proceeds as taxable income on your return. You may be able to exclude any gain from income up to a maximum dollar limit. If you can exclude all of the gain, you do not need to report the sale on your tax return.
More Details can be found here http://www.irs.gov/publications/p523/index.html
Thats all i can say.
Thanks
See its not the money you receive for the sale of your home, but the amount of gain on the sale over your cost, or basis, that determines whether you will have to include any proceeds as taxable income on your return. You may be able to exclude any gain from income up to a maximum dollar limit. If you can exclude all of the gain, you do not need to report the sale on your tax return.
More Details can be found here http://www.irs.gov/publications/p523/index.html
Thats all i can say.
Thanks