Discussion:Transfer ownership of home from parents
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Discussion Forum Index --> Basic Tax Questions --> Transfer ownership of home from parents
Discussion Forum Index --> Tax Questions --> Transfer ownership of home from parents
| 14 January 2008 | |
| Greetings,
I currently live in a condo that is owned by my parents. It is in Virginia. They purchased it in 1996 for $50k and I moved in at that time (they own and live in a different residence). Since then the mortgage has been paid off. The condo is currently valued at $350k. We now want to transfer ownership from them to me. What are our options in structuring this transaction (or transactions) in such a way to limit our tax costs? Thanks. | |
| 14 January 2008 | |
| 1) have them both die and leave it to you in their will - no income tax due
2) have them give the house to you & file a gift tax return (no tax due) 3) part sale, part gift 4) gift of a remainder interest, wait for them to die | |
| 14 January 2008 | |
| Without regards to the tax issue and not knowing the circumstances, if your parents were to go into a nursing home (god forbid) without the necessary finances to cover that expense, the nursing home will go after the condo and take the whole thing, leaving the children with nothing. One has to weigh the possible tax burden of giving the home to the children or waiting until the parents die with no tax. A friend of mine had a similar situation and decided to wait until their parents died, but the parents went into a home and the home made them sell the house to pay for their costs. It was an expensive decision the children, parents in home and now all of the parents assets were being converted to cash to pay for the health care costs. | |
| 14 January 2008 | |
| You need to about any prior gift tax returns before you can be sure there will be no tax due. | |
