Legal Question in Real Estate Law in Massachusetts
Subject to capital gains tax?
My mother owns a condo in MA that she is selling and I have just received a purchase and sale agreement with my name and my 3 sisters as 'sellers'. Further investigation reveals that we are also named on the deed with my mother as guarantor and 4 daughters as guarantees. Her lawyer tells me there is no tax liability if I sign the agreement but without my signature she cannot sell it. She also states that we are 'in name only' and have not been given any monetary interest. I question if I will be liable for capital gain tax since my mother is purchasing another condo that will be recorded in her name only. Am I liable for 1/4 of the capital gain?
2 Answers from Attorneys
Re: Subject to capital gains tax?
Hi & Thanks for Writing -
My name is Len Foy and I frequently represent parties to real estate agreements residing out of state, or overseas.
If you'd like me to review the purchase & sale agreement and the deed I'll be happy to do so - there is no charge for the initial consultation / preliminary review of documents.
Feel free to contact me at Gould & Gould at (603) 434-3437, or you can simply fax the documents to my attention at (603) 434-9578. I hope to hear from you - and by all means GOOD LUCK!
Regards -
Len Foy
Re: Subject to capital gains tax?
Assuming that your mother put your and your siblings names on the deed solely for the purpose of avoiding probate and that all the funds are issued in her name and the 1099B issued at closing only names her, then no you do not have any captial gains tax liability. Even if it does name you, you can disavow the ownership any way. However, at closing the closing attorney is most likely to name only your mother.
Her attorney should give an instruction to that effect and if needed have each of you confirm that your interest was in conjunction with estate planning and your name on the deed was only as a nominee during her lifetime.
You should also have her talk to her attorney about planning for her later years, commonly called elder care. It is the use of various trusts for your mothers assets used to protect them from Medicaid, should she need it in the event she has the need for specialized care and does not have sufficient insurance or income to pay for the care.
I hope this is helpful. If you have additional questions please feel free to contact me.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
