Posted on: 26th Feb, 2010 08:57 am
last year my dad was very ill. he and my mom are elderly and thought it would be a good idea to transfer their home into my name and my brother's name. in the event that my dad died i guess they thought that this would make things easier. fortunately, dad made a full recovery. unfortunately, transferring the deed now seems like a very bad idea. i am told by an accountant that dad now has to file a gift tax. additionally, they want to sell their house now and move into an apartment. since it is in our names we will have to pay taxes on the profit i think. we are regretting this huge mistake and wonder if it can be undone.
thanks for your help!
thanks for your help!
Hi airmalepa!
Welcome to forums!
I don't think this could be undone. Your father will have to pay the gift taxes as the property has been transferred as a gift to you. Once you sell off the property, you would be liable for paying capital gains tax depending upon the profit that you make from the sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I don't think this could be undone. Your father will have to pay the gift taxes as the property has been transferred as a gift to you. Once you sell off the property, you would be liable for paying capital gains tax depending upon the profit that you make from the sale.
Feel free to ask if you've further queries.
Sussane