Posted on: 30th Aug, 2012 07:57 am
Hi, In 2002 my father in law quit claimed his house to my husband with no mortgage. My husband took out loan to fix and rent home. The house was never reassess. Now my husband wants to sell house. WHat are his tax ramifications? There is huge difference in the price my father in law paid and what the house was worth at time of transfer and today.
Thanks Leah
Thanks Leah
Not sure what state you are in, but you would want to check with your tax advisor what the capital gains tax would be. You can avoid the capital gains if you do a 1031 exhange and purchase another like property within 2 years.
Welcome Leah,
If he incurs any profit from the sale of the property, then he will be liable for paying the capital gains taxes.
If he incurs any profit from the sale of the property, then he will be liable for paying the capital gains taxes.
