Legal Question in Tax Law in Utah

Can my mother deed her small second home to me without having to pay capital gains taxes? If so, how?


Asked on 5/29/10, 7:26 am

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Yes, there would be no capital gains tax on the transfer from your mother to you. BUT, you would receive the property at her basis. Suppose the property was acquired by her for $20k and is now worth $80k. If you sell it 5 years from now for $110k, you have a gain of $90k ($110k-$20kbasis.)

Secondly, your mother would need to use some of her gift tax exemption so she would not pay GIFT tax.

You should get a tax and estate lawyer to help you.

I hope this explanation helps!

Ron Cappuccio

www.SaveYourEstate.com

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Answered on 5/29/10, 12:38 pm


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