Legal Question in Real Estate Law in New York

Re: mom signed deed on house to children

You kept the house from going to the government if she becomes ill, but when she dies, your basis is what she paid for it plus any improvements.

If she owned the house and died, the heirs can use the market value o day of death.

Re: mom signed deed on house to children

By transferring the house during her lifetime, your mom made a gift to you and your sister. As a gift recipient, your cost basis is your mom's original cost of the house, plus any improvements made over the years. If, when she dies, the house is not the primary residence of you and/or your sister, the difference between the cost basis and sales price is a capital gain. If owned, including the time your mom owned it, is more than a year, the gain is long-term and subject to favorable tax rates. If it someone's primary residence for at least 2 years, a portion of the gain may be eliminated. Check with an accountant or a tax lawyer, like myself, for more specific details, or check the IRS website for sale of a home.