capitalgains
I live in Florida, I sold my house (distressed sell) to my sister in Indiana on 9/30/04 for 190k 60k below mkt value at the time, we are selling the home to a 3rd party for 335k due to close 3/7/06, this home has always been my residence and under texas law Riordanv/commission case TCMemo1978-19437TCM83937TCM939-1978 it would appear since I am gaining ALL of the profit she would not be liable for capital gains I would. My name is not on the deed, but could be quit claime deeded before the sale, I have lived in the house in question for 5yrs. was wondering if you had any tips on how my sister would not be liable for capital gains. She took out an equity line for six mths. worth of mortg. pyts from me and I have cancled checks wrote from me to her for the remaining mortg. as well as a rent to own contract signed from her. I also heard about ''Pagrick Law'' which does it apply because it was a disttess sale and like I said...No profit is to her. Any help would be appreciate..So, my two questions are Can she avoid Capital Gains and I assum them and Does my name need to be on the deed or not at closing? Thanks,
Sincerely,
Shirey
1 Answer from Attorneys
Re: capitalgains
Generally, if you sold your sister the house, then any gains/losses on a subsequent sale (and tax consequences) would belong to her. This cannot be cured by a quit-claim deed executed on the eve of a sale.
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