Legal Question in Tax Law in Massachusetts

Life estate/capital gains

In 1999, house deed was changed to three siblings and mom having life estate. Mother moved to elderly housing 5 months ago - house being sold - who pays capital gain taxes on sale of house.


Asked on 3/21/08, 5:06 pm

1 Answer from Attorneys

Re: Life estate/capital gains

You all do. You and your 3 siblings take your pro-rata share and your mother gets the value of her remainder interest. As it was her primary residence, she gets a proportional exclusion of $250,000. If none you lived in the home for at least 2 of the last 5 years as your primary residence, then you simply pay the capital gains.

I suggest you go through the calculation with your accountant.

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Answered on 3/21/08, 5:28 pm


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