Posted on: 09th Apr, 2009 03:45 am
Hiya,
I transfered my mom's house into my name to avoid medicade and to keep it safe from some pilfering relatives.
My plan is to keep it as long as I can only selling it, if she needs the money for care.
If she passes away and ended up not needing the money from the profit my question is this:
Can I sell it and split the money between my siblings under the gift exclusion tax and avoid paying the capital gains tax?
If she ends up needed the money from the sale of the house, do you thing the cost of caring for her will offset the capital gains tax?
I know I need to consult with an accountant and have posed this to my own, but with it being tax season, he is a bit busy.
Thanks so much!
I transfered my mom's house into my name to avoid medicade and to keep it safe from some pilfering relatives.
My plan is to keep it as long as I can only selling it, if she needs the money for care.
If she passes away and ended up not needing the money from the profit my question is this:
Can I sell it and split the money between my siblings under the gift exclusion tax and avoid paying the capital gains tax?
If she ends up needed the money from the sale of the house, do you thing the cost of caring for her will offset the capital gains tax?
I know I need to consult with an accountant and have posed this to my own, but with it being tax season, he is a bit busy.
Thanks so much!
Hi metinabong,
If you sell off the property and earn profit, you will have to pay the capital gains tax for the profit earned. Whether you divide it between your siblings or pay for mother's health, I don't think it would offset your capital gains tax.
Thanks
If you sell off the property and earn profit, you will have to pay the capital gains tax for the profit earned. Whether you divide it between your siblings or pay for mother's health, I don't think it would offset your capital gains tax.
Thanks
I know I have read if you inherit, they base it on the value today. With my mom's do they base it on the value or the orginal purchase or what the value was when my mom got it in the divorce settlement.
Additionally, when do you thing the improvements come in. My mom and dad did a very silly thing and bricked in a trailor as oppossed to building the house, so the assessment of the prop when first bought was for land and a trailor, when divorced, newly brick veneered trailor, and now it is a crumbling brick veneer with a delapitdated trailor inside.
On her tax assessment it is at only $68,000 and I know the brick veneer was $40,000, 20 years ago.
I intend on working with a professional with all this, but I am the type who loves to research all this ahead of time so I can understand what they are saying!
Additionally, when do you thing the improvements come in. My mom and dad did a very silly thing and bricked in a trailor as oppossed to building the house, so the assessment of the prop when first bought was for land and a trailor, when divorced, newly brick veneered trailor, and now it is a crumbling brick veneer with a delapitdated trailor inside.
On her tax assessment it is at only $68,000 and I know the brick veneer was $40,000, 20 years ago.
I intend on working with a professional with all this, but I am the type who loves to research all this ahead of time so I can understand what they are saying!
Hi metinabong,
As far as I know, the capital gains tax will be based on the purchase value of the property less the sale value of the property. If you make a profit by selling the property, then you'll have to pay taxes. I think, you need to appraise the property and know what the exact value of the property is. This will help you know how much capital gains tax you need to pay.
As far as I know, the capital gains tax will be based on the purchase value of the property less the sale value of the property. If you make a profit by selling the property, then you'll have to pay taxes. I think, you need to appraise the property and know what the exact value of the property is. This will help you know how much capital gains tax you need to pay.