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Warranty Deed transfer - Tax implications

Posted on: 18th Nov, 2010 07:15 pm
My mother is wanting to do a Warranty Deed transfer on her condo in the state of Washington to me as I live in California as a gift, the property is paid in full with no balances owed. The property value is $232,000. What are my tax implications? Will I owe tax on the $232,000 as income? Also, will I have to pay capital gain tax on the $232,000 if I sell the property?

Thank you,

Peter
Hi pheines,

You will not be liable for paying taxes. However, as your mother is transferring the property as a gift, then she will be liable for paying the gift taxes. However, there is a gift tax exemption of $1million for the life time.
Posted on: 18th Nov, 2010 08:57 pm
Will I have to pay capital gain tax on the $232,000 if I sell the property since it was a gift?
Posted on: 18th Nov, 2010 09:14 pm
Can anyone help me on my last question?
Posted on: 19th Nov, 2010 06:57 pm
Hi pheines,

You are the present owner of the property. If you sell off the property and receive profits, then you will have to pay capital gains taxes.

Thanks
Posted on: 19th Nov, 2010 08:42 pm
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