Posted on: 23rd Mar, 2010 05:51 am
My parents can no longer afford their home. After speaking last night we deiced to sell ours and move into their home in order to save the nicer house. we will all be living under one roof and I'm wondering how can we start to just take over loan. The current home that I live in now, was gifted to us my my parents and so I don't think that they can gift us another home (this was so that property tax does not raise).
any suggestions?
any suggestions?
Hi Jennifer!
Welcome to forums!
There would be tax issues if your parents try to gift you another property as they may have crossed the lifetime gift tax exemptions. If they gift you the property, then they would be responsible for paying gift taxes.
However, if you want to take over the loan, then either you'll have to purchase the property from them or they'll have to gift you the property. If you purchase the property from them, then they may be responsible for paying the capital gains taxes if there is a profit from the sale. You can go for either of the options as there would be tax issues.
Sussane
Welcome to forums!
There would be tax issues if your parents try to gift you another property as they may have crossed the lifetime gift tax exemptions. If they gift you the property, then they would be responsible for paying gift taxes.
However, if you want to take over the loan, then either you'll have to purchase the property from them or they'll have to gift you the property. If you purchase the property from them, then they may be responsible for paying the capital gains taxes if there is a profit from the sale. You can go for either of the options as there would be tax issues.
Sussane