tax - Posted by Jessica

Posted by Dave Murray, Ohio CPA on September 02, 2003 at 14:14:03:

  1. Your parents will have to file a gift tax return. Whether they will owe gift tax or not depends if they have done other gifts which have used up their credit (called “unified credit”).
  2. The children will have the same basis as the parents and thus will pay capital gains tax since it is none of the children’s personal residence. There is obviously some planning that can be done to minimize the overall tax impact. I suggest you engage a competent professional to discuss this. Their fee will be much less than the potential tax if you mess it up…

tax - Posted by Jessica

Posted by Jessica on September 01, 2003 at 17:35:08:

My parents want to change the deed of their house(market value of about $500,000) to three of their children. We all own an apartment which is our primary residents. My questions are

  1. Would there be gift tax or any other kinds of tax when the title of the deed changes to us(children)?

  2. After the change, if we(children) sell the house, what would be the tax ramifaicaion?

thank you so much