Posted on: 06th Apr, 2010 12:45 pm
My parents filed a quitclaim deed on their summer house into my sister's and my name. My father has died and the house is too much for my mother. She would like to see it sold. We are in agreement but I understand we are the true owners even though she has lifetime pepetuity to live there. Is there a way to sell and avoid tax implications?
Or to sell and not have the money go back to my mom as she doesn't need it and would like us to have the proceeds of the house as would have happened eventually upon her death.
Who would owe capital gains. She has the rest of her assets in a trust.
Or to sell and not have the money go back to my mom as she doesn't need it and would like us to have the proceeds of the house as would have happened eventually upon her death.
Who would owe capital gains. She has the rest of her assets in a trust.
Hi medyan,
As the property has been transferred in your name, you are the owners of the property though your mother has lifetime rights on it. Thus, you would be able to sell off the property but you will have to take her permission in this regard. If there is a profit from the sale of the property, then you would be responsible for the capital gains taxes.
Thanks
As the property has been transferred in your name, you are the owners of the property though your mother has lifetime rights on it. Thus, you would be able to sell off the property but you will have to take her permission in this regard. If there is a profit from the sale of the property, then you would be responsible for the capital gains taxes.
Thanks
Thanks James,
That is what I thought but since it was only 5 years since the rights were transferred is it on the total cost basis or on the difference in profit from when it was put in the deed until now?
Does the government view this as potentially her money if she were ever to need nursing home care?
Thanks,
That is what I thought but since it was only 5 years since the rights were transferred is it on the total cost basis or on the difference in profit from when it was put in the deed until now?
Does the government view this as potentially her money if she were ever to need nursing home care?
Thanks,
Welcome sueme,
As far as I know, the capital gains taxes will depend upon the amount of profit you make after the sale of the property. As the property is in your name, the money that you receive from the sale will be considered as yours. The government will not consider this your mother's money.
As far as I know, the capital gains taxes will depend upon the amount of profit you make after the sale of the property. As the property is in your name, the money that you receive from the sale will be considered as yours. The government will not consider this your mother's money.