Posted on: 09th Feb, 2010 11:11 am
i inherited a home from my mom & dad in rhode island...i am now getting a divorce...i want to stay in my present home and have my wife take my parents home. She wants to buy another home with that home..what way should i go to avoid a personal-federal capital gains-tax issue....1) quit claim my parents home to her and she can sell the home to buy herself a new home ? or 2) sell my parents house myself, buy her the house she wants, then quit claim that house to her ? PLEASE HELP!!
Hi Joe,
If you want your wife to take your parents' home, you can sign a quitclaim deed and transfer the property to her. If your transfer it as a gift, you can claim exemption from gift taxes. You can avail an annual gift tax exemption of $13k and a lifetime exemption of $1 million. This seems to be the easiest way to transfer the house to your wife.
If you sell your parent's house, you will be subject to a capital gains tax. Buying a house with the proceeds of the sale and then quitclaiming it to your wife would be a little complicated. Thus, it's better simply quitclaim your parents' house to your wife and transfer the ownership to her.
If you want your wife to take your parents' home, you can sign a quitclaim deed and transfer the property to her. If your transfer it as a gift, you can claim exemption from gift taxes. You can avail an annual gift tax exemption of $13k and a lifetime exemption of $1 million. This seems to be the easiest way to transfer the house to your wife.
If you sell your parent's house, you will be subject to a capital gains tax. Buying a house with the proceeds of the sale and then quitclaiming it to your wife would be a little complicated. Thus, it's better simply quitclaim your parents' house to your wife and transfer the ownership to her.
you were a big help..THANKS SO MUCH!!