#265

[@Morningdovecamp]

Thanks for great info 👍

[@CMSLawFirmLLC]

You're welcome!

[@flosifa5]

Wow! Thank you for the details provided on this video. This is very helpful because my husband inherited his late mother’s house through a transfer on death deed and he sold the house 2 months later because we already had a primary home. Hopefully we won’t owe taxes.

[@CMSLawFirmLLC]

You're welcome! Only tax owed would be on any gain AFTER death.

[@JoshGreer-u6s]

I just came across this video and it seems to be a lot of help. I am in kind of the same situation in selling a second home. Selling my second home to a grandchild. I purchased the home for $100,000. The value of the home is $300,000. I am gifting $100,000 to make the home affordable for them. This means I would pay capital gains on the $100,000 difference from my basis to what I actually received from them and file a gift tax form for another $100,000 towards my lifetime credit. This would also mean their basis is $200,000 and not the $300,000 from the appraisal price. I hope this is the correct way of thinking about this.

[@CMSLawFirmLLC]

Correct from what I can tell.

[@lfuentes4098]

I don’t think you would pay capital gains because $250k for single and $500 for married is excluded from capital gains. Oh Nevermind, you said second home. Only the home you live in is excluded. Although if you live in the home for two years before the sale it could be excluded I think.

[@trentrent3]

Very helpful.

[@CMSLawFirmLLC]

Great!

[@nanettestevenson9904]

I'm in a situation where my parents(now deceased) gifted property to a partnership that 5 siblings owned equally. Now we want to split it up.. How do you do it with the least tax implications. There is one house and 50 acres of now designated timberland that's within the city limits. The minimum acreage to keep it designated as timberland is 20 acres for low taxes. 3 siblings may want to keep their land together but my sister and i want out from the dysfunctional partnership. Thank you Please help!

[@CMSLawFirmLLC]

You should get an attorney. They will be able to help you. And, read the partnership agreement to see what you can do.

[@krisl1013]

If you buy the property with gift of equity, what is cost basis for recipients? Would it be SP or the donor’s basis? SP $300k Gift of Equity $150k mortgage $150k.

[@tnoslrac]

Capital gains tax paid by the grantee at time of selling said property, is this true in the state of Minnesota?

[@TheK9Shepherd]

Who does those step up in basis assessments at time of death? I know in CA they will then do a FMV for property tax purposes. Where I am from on the east coast, home values for tax purposes are always lower then what the FMV is. So I am curious who does the valuation at time of death (and does that ever mirror what the FMV for property taxes ?) Thanks

[@CMSLawFirmLLC]

You should get an appraisal or, at the very least, an opinion of value from an expert (a real estate agent usually qualifies).

[@lfuentes4098]

When my mom passed away in CA(2003) we got a FMV from real estate to get an idea of the value. Probate court assigned a appraiser and he did his own assessment. It ended up being the same amount. But the court wouldn’t take our word. Idk if things have changed much since then.

[@Nnnqqq689]

Thank you for the information. May I inquire if I need to pay tax when I, as a green card holder, gift $350k to my husband who is a U.S. citizen? Additionally, I reside in California. Would there be any state tax implications? Thank you

[@justinfleagle]

I am going to purchase a commercial small business property from my father. Is it possible to purchase through father-son non-taxable gifts (limit of 36k/year for mother & father)?

[@Sharvie831]

I got one for you this guy got house gifted to him. He is the owner of the property and now he wants to gift me the property how does that work ?

[@MasonLeCompte]

But what about 1031 exchange

[@CMSLawFirmLLC]

A 1031 carries over the appreciation from the original deal, but it has to be exchanged with like-kind property. Here we're not talking about an exchange, we're just talking about a gift. Great question!

[@alanlow6039]

Hi so my pops is trying to gift me a house that my GMA paid 15,000 back in the 60s would I have to pay taxes on the gift or is it only when or if I sell the house. i think the house i valued at around 300k

[@TheK9Shepherd]

You would have to pay capital gains tax when you sell on the difference from $15k to what you sold it for (let's say $300k) Minus any monies spent improvements like a new roof, water boiler, etc.... So anything you paid for to improve the house (or fix it) That could reduce the capital gains when you go to sell. It's best that he put the house in a trust or will to give to you. That way at the time of his passing, the step up in basis would bring the value to $300k (let's say) So if you go to sell the house for $300k, you pay zero in capital gains. Even if you sell it for $400k, then you only pay capital gains on $100k Much better then $285k if he gifted it to you.

[@kimkotanaku7490]

Gift of Equity sold my nephew & His Wife of $49000 should Make out 709 Form $ 24500 Both - $32000 on the Form $ $16000 Each or add two Their Children $12,250 $ 0 out $49000

[@CMSLawFirmLLC]

Depends on if you want the kids on the deed (probably not). You could also break it up into two years. $18k per adult this year, and then another $18k per adult next year. It seems like it gets you there. No gift tax to file.

[@xmen123ify]

Can you exemption 250k on capital gain if you lived in the property more then two years?

[@xietimmy]

Yes! As long as you have made it your homestead for 2 out of the last 5 years, you can be exempt $250k in capital gains if you're single, or $500k if you're married.

[@lorenzolr2074]

@@xietimmyMay I inquire if I can do this $500,000 exemption for married couple more than once? I would sell our house first, then live at the house my mom gifted to us for at least two years. Thank you.

[@aka_khema]

Let’s say my parents purchased my condo with cash and it’s in my giftee’s name

[@raphaelnunez8224]

How would it work if my father gives me 40k land for me to build a house there?

[@CMSLawFirmLLC]

Same way. You'd take the property at whatever he paid for it, not what it's worth. If you sold it, that purchase price would be used as the tax basis (plus the cost of improvements made).