Legal Question in Real Estate Law in Maryland
capital gain taxes
I have been renting a house to a single mother for the past 15yrs and the house is in poor condition. I want to give the house to her as a gift. Will I have to pay any taxes or how would I proceed with the tranfer of title?
1 Answer from Attorneys
Re: capital gain taxes
The transfer would be subject to gift tax payable by the donee (that's her), but in all likelihood her lifetime gift and inheritance tax exemption would cover it. However there would be transfer and recordation taxes imposed. You would have to check with your county to see what their transfer and recordation tax is. Presumably she's never owned property in MD, so you would pay a .25% state transfer tax. These taxes would be imposed on the assessed value of the property.
To accomplish this transfer, you would execute a deed to the property. You should contact an experienced real estate attorney to make sure the deed is prepared properly to effectively accomplish what you want to do.
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