Legal Question in Real Estate Law in New York
My parents (who both died in the past year) transferred the deed of their house to their 4 children in 2003. Now, one of the kids wants to buy out the other 3. If the house is currently appraised for $400,000 and "John" gets a mortgage and gives each of his 3 siblings $100,000 each.........how will it affect us tax wise for next years income tax returns?
1 Answer from Attorneys
It should not affect your tax return at all. Inheritances are not subject to federal of state income taxes.
However, if the "sale" price of the house exceeds it's value on the date of your parent's death, you may have some short-term capital gains of your share of the excess.
In examining this response, please note that we are not entering into an attorney/client relationship, that this is to be taken as informative, and not as legal advice, that it is always best to speak to a lawyer in your area and/or in the area where the transaction and/or events occurred, and that my answer is necessarily limited by the fact that I have not seen the documentation or had an opportunity to go over the matters with you in detail.
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