Posted on: 01st Oct, 2008 10:22 am
My mother quitclaimed her house to me yesterday. She is 78 and the purpose of doing this was soley to get her name off the house so that if she passed it wouldn't go into probate. We put that I bought it for 100.00 and checked the box at the auditors office that it was a gift. Now I am wondering if that was a stupid move and am really worried about capitol gains tax when I sell it. Can you direct me in my confusion?
Hi mbl!
Welcome to Forums!
Quitclaim deed is indeed one of the best ways of transferring the property to you. Yes, once you sell this quitclaimed property, there are chances that you will have to pay 15% capital gains tax and other state taxes from the profit of the sale.
The acquisition cost for CGT will actually be the market value on the date of the gift. The capital gains arising on the property will be calculated using that cost thereafter. If you occupy the home as your main residence between the date of gift and the time of sale, then there will be no CGT on any gain that you may make after the gift.
Feel free to ask if you have further queries.
Sussane
Welcome to Forums!
Quitclaim deed is indeed one of the best ways of transferring the property to you. Yes, once you sell this quitclaimed property, there are chances that you will have to pay 15% capital gains tax and other state taxes from the profit of the sale.
The acquisition cost for CGT will actually be the market value on the date of the gift. The capital gains arising on the property will be calculated using that cost thereafter. If you occupy the home as your main residence between the date of gift and the time of sale, then there will be no CGT on any gain that you may make after the gift.
Feel free to ask if you have further queries.
Sussane
Hi mbl!
Yes, there are chances that you will be charged 15% capital gains tax along with other state taxes. It will be better if you could consult the executive of the tax department.
Thanks,
Jerry
Yes, there are chances that you will be charged 15% capital gains tax along with other state taxes. It will be better if you could consult the executive of the tax department.
Thanks,
Jerry