Posted on: 07th Sep, 2011 05:52 pm
Hello,
My neighbor has a house that was deeded to him from his mother in 2010...he owns the house free and clear...how can we lesen th capital gains tax for him and what should I do to make sure that I am not burdened with unneccessary costs and fees as well....
My neighbor has a house that was deeded to him from his mother in 2010...he owns the house free and clear...how can we lesen th capital gains tax for him and what should I do to make sure that I am not burdened with unneccessary costs and fees as well....
Welcome slimkins,
If your neighbor is selling off the property to you, then he will be liable for paying the capital gains taxes. The capital gains tax will depend upon the amount of profit your neighbor will be making from the sale of the property. You won't be liable for paying any taxes. If your neighbor wants to reduce the capital gains taxes, then it will be better if he could contact a tax adviser in this regard.
If your neighbor is selling off the property to you, then he will be liable for paying the capital gains taxes. The capital gains tax will depend upon the amount of profit your neighbor will be making from the sale of the property. You won't be liable for paying any taxes. If your neighbor wants to reduce the capital gains taxes, then it will be better if he could contact a tax adviser in this regard.
You have 2 years to purchase another home, to avoid the capital gains tax. Its called a tax deferment exchange. Take a look into this and you will find much more info to help you in this situation. Good Luck
