Posted on: 15th Sep, 2008 02:48 pm
My brother and sister and I received a quick claim deed from our parents on their home and 2 additional lots in 1999 with a life estate. Our mother was the last to pass away in 2006. We have just sold the house and the 2 lots (2008) and would like to know our federal tax implications. The house was totally free of leins or mortgage and our parents lived in the house since 1945. The total selling price was $425,000 and we believe the house was given to them by my mother's mother so no price was originally paid.
Welcome Paulgiovanini,
Have you incurred capital gains in the sale of your home? If so, then you need to pay federal capital gains tax on the profit from the sale. However, there are tax exemptions which you may qualify for. Check out the capital gains tax exemption from http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption .
Have you incurred capital gains in the sale of your home? If so, then you need to pay federal capital gains tax on the profit from the sale. However, there are tax exemptions which you may qualify for. Check out the capital gains tax exemption from http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption .
What year would we be required to use to determine the capital gains? We were quick deeded the house in 1999, but our mother lived in the house until 2006.
I guess you should consider the year 1999 when you received ownership rights through quitclaim deed.