Posted on: 01st Feb, 2010 10:00 am
My brother is giving me a piece of property and I want to know if the reason code have any affect on the taxes I will pay if I sell it.
Hi,
If your brother is giving the property to you, then he will have to pay transfer tax. But if he gives the property to you as a gift, he can claim gift tax exemption. You will not have to pay any taxes until you sell the property. When the property is sold off at a profit, you'll have to pay capital gains taxes.
If your brother is giving the property to you, then he will have to pay transfer tax. But if he gives the property to you as a gift, he can claim gift tax exemption. You will not have to pay any taxes until you sell the property. When the property is sold off at a profit, you'll have to pay capital gains taxes.