Got Heir Property, NOW WHAT? - Posted by Rod


#1

Posted by raelynn mitchell on November 29, 1998 at 11:18:20:

someone who inherits property gets to tell the IRS they received it at the fair market value at the time of decedent’s death. If they in turn SELL at market value, they have no taxable gain. Their giving the property away can create problems, as any gift above $10,000 per individual is most likely considered a taxable gain and the IRS expects the giver to pay the tax. If they SELL it to you, however, it’s a different ballgame. If they were to sell to you, carry a note and forgive $10,000 worth of the lien per year per individual they MAY avoid the gift tax. But YOU would have taxable income to the IRS, as a forebearance (sp?) of a loan is considered income to the receiver.

No, I’m not a CPA, so find a good CPA and real estate attorney ASAP - preferably before receiving title - because there’s gotta be a creative way to structure this so that the IRS doesn’t get “rich” yet everyone’s goals are met.


#2

Got Heir Property, NOW WHAT? - Posted by Rod

Posted by Rod on November 28, 1998 at 20:09:39:

My father and his two brothers are the heirs of their mother’s property. I have asked for it and they are all in agreement to give it to me. What needs to be done legally for this property to be put in my name?

The house was removed, it is about 2 city lots. I would like to turn it into a cash cow. Should i put a Mobile home on it or have a SFH built? Any suggestions???

Thanks in advance
Rod


#3

Build a baseball stadium … - Posted by Redline

Posted by Redline on November 30, 1998 at 20:44:17:

Zoning. You need to find out the current zoning (i.e. what the town/city will allow you to build/put on this property). Vacant land = no cash cow. Figure it out before it eats at your wallet.

RL


#4

Re: Got Heir Property, NOW WHAT? - Posted by Bud Branstetter

Posted by Bud Branstetter on November 30, 1998 at 12:29:48:

The first order of business is to get the property into their names. Probate or affidavits of heirship will have to be done. Then they can gift the property to you.

Cash cows are usually where you have little money into a deal and you don’t have to do much to get the money. Mowing the grass and paying taxes won’t get you there. If you can get proper zoning for MH a couple Lonnie deals would work. There will be costs to establish utilities and pad. Another alternative is to contact a local builder and have him put a spec house on the property. Subordinate to the construction loan. Profit when he sells the house.


#5

Re: Got Heir Property, NOW WHAT? - Posted by Rob FL

Posted by Rob FL on November 29, 1998 at 12:57:12:

Carol is right a deed from all the heirs should be sufficient to give you title. (of course a title search should probably be done anyway)

As far as the vacant land, I would generally think that it would be a poor investment due to the time and expenses involved. Maybe you could use the land as a downpayment/trade for an income producing property or something else. Maybe the next door neighbors might be interested in buying it. Maybe you could rent out the lots and let someone else put a mobile home on it. Just some ideas.

Good luck.


#6

Re: Got Heir Property, NOW WHAT? - Posted by Carol

Posted by Carol on November 29, 1998 at 10:56:12:

Rob,
Unless there is an outstanding lien on the property I would imagine that quit claim deeds from all currently titled on the property should handle the transfer of property - however, I don’t know what if any tax implications there might be.
As to that and the second question, what to do with it, we would need a lot more info to begin to give intelligent - or even stupid - suggestions.
Tell us more
Carol
PS I am no legal expert, but the transfer of clean title is not much of a problem… if you can find a good atty locally, go for it. At least talk with a title company, and your CPA.