Posted on: 24th Sep, 2008 01:15 pm
My deceased mother had a trust that included her home and several bank accounts. The accounts are going to 2 of her adult children, and the house is to be given to the other 2 adult children. As trustee, I am using a quitclaim deed to transfer the house. Would it be preferable for tax purposes for the selling amount to be zero, or the current appraised value of the house? Or would their cost basis be the value at the time of her death, since the trust is being dissolved in accordance with her will.
Hi paulainfla!
Welcome to Forums!
You will be inheriting the property at the current market value and if you sell the property immediately, you will get the amount and there will be no taxes charged as far as my knowledge. However, if you inherit the property and decide to sell it after a year, then the appraised value will be taken into consideration. On that appraised value, you will have to pay the capital gains tax and state tax.
If you are speaking about the stamp docs used in the transfer of the property, then I dont think you will be able to put the amount as zero.
Feel free to ask if you have further queries.
Sussane.
Welcome to Forums!
You will be inheriting the property at the current market value and if you sell the property immediately, you will get the amount and there will be no taxes charged as far as my knowledge. However, if you inherit the property and decide to sell it after a year, then the appraised value will be taken into consideration. On that appraised value, you will have to pay the capital gains tax and state tax.
If you are speaking about the stamp docs used in the transfer of the property, then I dont think you will be able to put the amount as zero.
Feel free to ask if you have further queries.
Sussane.
I was referring to the amount to put on the quitclaim form, to be sure it is treated as an inheritance (& cost basis is appraised value) when the house is sold later. I'm not sure what stamp docs are- hopefully something the lawyer will take care of?!