buying fathers rental have some tax questions - Posted by SPD

Posted by Jay(TN) on August 04, 2003 at 08:07:30:

The mortgage amount is not important. What you need to know is how much he paid for the property and what depreciation he has taken. This will allow you to calculate an adjusted basis. The difference in the purchase price and the adjusted basis is your taxable gain, with a portion being subjected to depreciation recapture and the other long term capital gains. He is responsible for paying the taxes.

jurgen

buying fathers rental have some tax questions - Posted by SPD

Posted by SPD on August 03, 2003 at 11:56:01:

i am planning on purchasing my fathers rental property, a 3BR with a good tenant(total rent 835/mo). Purchase price is 145K. My father owes approx. 63K on mortgage. What are the tax ramifications(capital gains tax)if my name is added to the title and mortgage? Who is responsible for capital gains taxes and when would it be due?