Years ago, my mother and I bought a rental property together 50/50. We did not put my name on the mortgage. Since then, I bought her out, but we kept it in her name because there was really no reason to change it. I now plan to sell it, but was wondering how that will work with it in her name. There is about $150k equity, plus it should sell for about $100k over what we paid. Even though I bought her out, I was planning on giving her another $50k from the sale. That leaves $200k that will be in her account.
Are there any suggestions as how to transfer this without penalty/taxes? I know you can give $14k per year, but is there a way of giving more tax free?
1st post nailed it !
Al Cappucino -
I'm an asshole, but I don't get the luck part. I invested in a place, am trying to sell it to get another rental, but cannot figure out how to move the money without having to pay taxes. How does luck factor into that?
Pugilist82 - Years ago, my mother and I bought a rental property together 50/50. We did not put my name on the mortgage. Since then, I bought her out, but we kept it in her name because there was really no reason to change it. I now plan to sell it, but was wondering how that will work with it in her name. There is about $150k equity, plus it should sell for about $100k over what we paid. Even though I bought her out, I was planning on giving her another $50k from the sale. That leaves $200k that will be in her account.
Are there any suggestions as how to transfer this without penalty/taxes? I know you can give $14k per year, but is there a way of giving more tax free?
Just have her transfer the money to you.
Unless she has $5 million or more, the gift tax won't be applicable...
lionsoul -Pugilist82 - Years ago, my mother and I bought a rental property together 50/50. We did not put my name on the mortgage. Since then, I bought her out, but we kept it in her name because there was really no reason to change it. I now plan to sell it, but was wondering how that will work with it in her name. There is about $150k equity, plus it should sell for about $100k over what we paid. Even though I bought her out, I was planning on giving her another $50k from the sale. That leaves $200k that will be in her account.
Are there any suggestions as how to transfer this without penalty/taxes? I know you can give $14k per year, but is there a way of giving more tax free?
Just have her transfer the money to you.
Unless she has $5 million or more, the gift tax won't be applicable...
Seriously? That would make things much, much easier.
Thanks for the info man.
Have you been depreciating the property? Doesnt really matter the govt assums you have and will require you to recapture it and pay tax. Dont forget about it.
def speak to your accountant or lawyer first, but lionsoul is correct....unless your mom has gifted more than $5million in REPORTABLE gifts , there wont be any taxes paid
In Limbo -def speak to your accountant or lawyer first, but lionsoul is correct....unless your mom has gifted more than $5million in REPORTABLE gifts , there wont be any taxes paid
This. There could be unforeseen tax consequences to your mom... so you may need to factor that in.
Thanks for the answers guys.