Posted on: 26th Apr, 2007 12:28 pm
My mother died without leaving a will. Her house is going up for tax sale.
I am trying to keep it off the tax auction. If I get if off the auction block, and get my siblings to quit claim it to me, what are the tax issues. How do I claim it on my income tax. Is this inheritance or a purchase. I understand the taxes would be deductible. I may have to rent it out. The house is in horrid condition, it is more of sentimental value. I would have to gut it and maybe it might be livable for someone who is use to living in bad conditions. What are the tax issues here.
thanks
I am trying to keep it off the tax auction. If I get if off the auction block, and get my siblings to quit claim it to me, what are the tax issues. How do I claim it on my income tax. Is this inheritance or a purchase. I understand the taxes would be deductible. I may have to rent it out. The house is in horrid condition, it is more of sentimental value. I would have to gut it and maybe it might be livable for someone who is use to living in bad conditions. What are the tax issues here.
thanks
Sorry to hear about your mother's death.
Linda, you will have to pay off the tax lien to get it removed from the auction. It will be considered as purchase but if there was a will and you received the house as part of will then it would have been an inheritance.
Linda, you will have to pay off the tax lien to get it removed from the auction. It will be considered as purchase but if there was a will and you received the house as part of will then it would have been an inheritance.
Hi Linda,
Since you want to keep the property off the tax auction, then you may be paying for it so that the auction isn't held. In this case, it will not be regarded as a sale. Since your mother has left no Will, so the property should be divided as per the state laws on Intestate Succession.
You need to approach the court and apply for a distribution of the property. The court will then execute the process and divide the property into the rightful owners. In that case, it will be considered not as purchase but inheritance and if you get the property rights, you will have to pay the estate tax.
The estate tax is imposed by the US government on the transfer of the estate of a deceased person. It does not matter whether the transfer is done through a Will or by the laws of Intestate Succession. However, there is an exemption limit allowed on estate tax. For 2006-2008, one can avoid paying estate tax on a property received after the owner's death provided the property value does not exceed $2 million. For married couples, each spouse is entitled to $2 million exemption separately.
Thanks,
Sara
Since you want to keep the property off the tax auction, then you may be paying for it so that the auction isn't held. In this case, it will not be regarded as a sale. Since your mother has left no Will, so the property should be divided as per the state laws on Intestate Succession.
You need to approach the court and apply for a distribution of the property. The court will then execute the process and divide the property into the rightful owners. In that case, it will be considered not as purchase but inheritance and if you get the property rights, you will have to pay the estate tax.
The estate tax is imposed by the US government on the transfer of the estate of a deceased person. It does not matter whether the transfer is done through a Will or by the laws of Intestate Succession. However, there is an exemption limit allowed on estate tax. For 2006-2008, one can avoid paying estate tax on a property received after the owner's death provided the property value does not exceed $2 million. For married couples, each spouse is entitled to $2 million exemption separately.
Thanks,
Sara