Assuming home is paid for and he would like to transfer the deed/title of the house to his child, are there high closing costs or tax implications in doing so?
What if said parent is still alive and will remain living there? And to expand, what if the house was purchased from the parents but at a discounted rate?Martin Q. Blank said:
Just file a deed with the county.
The tax implications are capital gains. If the parent transferred it upon death, the capital gains would be wiped away.
There could be gift tax implications as well.Martin Q. Blank said:
Just file a deed with the county.
The tax implications are capital gains. If the parent transferred it upon death, the capital gains would be wiped away.
An example? Legal pitfall, IRS pitfall, ???Agilaw said:
Make sure you understand the potential pitfalls of using a TODD in Texas. Many times it in not the best avenue to accomplish your goals.
I mean, PITFALL is damn dire for something as innocuous as a transfer upon death dead. It has to be on file before decedent passes away, need proof of death, it's not like we're talking about pecker cancer.one MEEN Ag said:
He's a lawyer. He's set the hook, now you gotta pay up to get those answers.
one MEEN Ag said:
He's a lawyer. He's set the hook, now you gotta pay up to get those answers.
If the gain on the home sale is greater than the above, get a CPA or tax attorney, it will be worth the money.Quote:
If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets. Topic No. 409 covers general capital gain and loss information.
itsyourboypookie said:
Why not have the kid buy it for $1?
Nope.bkag9824 said:itsyourboypookie said:
Why not have the kid buy it for $1?
Interesting thought...
For you tax/legals - would this type of sale fall under "arms-length" considerations?
This. Unless the parent is gonna be close to that $11MM lifetime gift amount, I would think the simplest thing would be to give the house and file IRS form 709.BusterAg said:
Honestly, you are likely about to do this tax free unless the estate of the person giving you the house is over the estate tax exemption when he / she dies.
That number right now is $11 million, or $22 million for a joint estate. But, the way we are going, who knows where it will be in the future.