Legal Question in Real Estate Law in Maryland
real estate sale
mother and three daugthers are on the title, mother dies one sister gets a refiance of mortgage that is on the property and borrows enough to pay sisters there third of what they agreed was a fair priceof the home. who has to pay taxes if any.
1 Answer from Attorneys
Re: real estate sale
The capital gains taxes on the profits received by the sisters who sold out would be payable by them. The amount taxed would be the difference between what they received and what their share of the house was worth. Unfortunately, since their names were put on the deed by the mother while she was still alive, they acquired their share at the mother's basis--probably what the house was worth when the father died, plus any improvements added to the house after that. They should consult a tax professional to help them properly report this and pay the tax.
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