Posted on: 28th Jun, 2011 11:35 am
We have lived in a double/duplex for 18 years. My mother-in-law owns the property outright and lives on the other side. She is moving to another state and wants to Quitclaim the property to my husband. We've been doing research on this and have found conflicting information. 1) Can she claim an exemption on the gift tax against the $1 million lifetime limit? 2) We are planning on moving to another state in a year. When we sell the house, will we have to pay inheritance tax and/or capital gains tax? 3) Is the value of the house at the time she purchased it or when she gifts it figured in as the starting value to use when figuring inheritance tax/capital gains tax? Ex. If she paid $63k and now it's valued at $93k, and we sold at $100k. Which value would we use?
Welcome ptahtwo,
If she had not claimed gift tax exemptions earlier, then she will be able to claim gift tax exemptions depending upon the life time amount of $1 million. When you sell off the property and receive a profit from it, then you will be liable for paying capital gains tax. I guess the value of the property when she transferred it to you will be taking into consideration while calculating the taxes.
If she had not claimed gift tax exemptions earlier, then she will be able to claim gift tax exemptions depending upon the life time amount of $1 million. When you sell off the property and receive a profit from it, then you will be liable for paying capital gains tax. I guess the value of the property when she transferred it to you will be taking into consideration while calculating the taxes.