Legal Question in Real Estate Law in Pennsylvania
How to avoid capital gain
I am on the deed along with my mother. It has been her primary residence for 50 yrs.It was my primary for approx 6 monthes.I was put on the deed approx 10 yrs ago. How can I avoid paying my half of gain. Should I take my name off the deed before selling it? I can not make it my primary. We intend to put it on the market in April 2006. Is it too late to take my name off? Thank you
1 Answer from Attorneys
Re: How to avoid capital gain
That question can't be answered with the information you have provided. There are many alternatives to avoid the capital gains and they range from purchasing a more expensive replacement property to participating in an exchange of like property (referred to as a Starker Exchange).
There are even some simple means such as not taking any of the proceeds. Just because you are on the deed doesn't mean that you have an equitable interest in the property. Mom can take all the proceeds as exempt under the one time sale rule (in available) or can allocate in whatever measure you would like.
You and your mother need to sit down with an attorney to discuss the goals you want to reach. From that conversation an attorney can help you and mom develop an estate plan that provides for her as long as she needs and distributes the residual of here estate as she wishes. Again, this area is much more complex than I can discuss here.
I would be happy to sit down and discuss your options. Please call or eMail me to arrange an appointment.
Regards,
Roger Traversa
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