Discussion:Sale of a deeded home
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Discussion Forum Index --> Advanced Tax Questions --> Sale of a deeded home
Discussion Forum Index --> Tax Questions --> Sale of a deeded home
DR BRISKET (talk|edits) said: | 4 April 2008 |
| Back in 2002, my client's parents deeded their home to my client and her brother. The parents continued to live in the home. Last year, it sold for $80,000. The basis in the home is only about $35,000. Is this a capital gain transaction?--$45,000 split two ways, or since the parents continued living in the home, can the two out of five year rule apply? | |
| 4 April 2008 | |
| You should research whether the "Implied Life Estate" concept applies, otherwise, taxed to the children, gift basis rules apply.
if parents were alive, but didn't have to sign at closing, then it is probably too late for implied life estate | |
| 4 April 2008 | |
| the children should have deeded it back to parents prior to the sale closing | |
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