Legal Question in Real Estate Law in Virginia

Situation: Husband and I bought a house in VA back in 1994 for $250 k and house is mortgage free. We are splitting up, and I�m buy husband�s � of equity. House is assessed at $600k recently. I�m willing to pay $300k for his share. I understand that QuitClaim Deed may be good enough for removing him from the title of the house.

However, I�m more concerned about tax implication later if I sell the house 5 or 10 yrs down the road. How do I make sure that I could use the step-up basis of $600k as the new adjusted cost. Do I need to formally execute a Sale?

Asked on 1/15/13, 1:18 pm

Michael Hendrickson Law Office Michael E. Hendrickson

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With a quitclaim deed, you and your husband would jointly

execute the deed and convey the property to you alone, meaning

that your ownership status with respect to this property would

continue unabated and without interruption, making it unlikely that you would

be eligible to claim the stepped up basis reflecting the value

of the house at the time of this conveyance to you alone.

However, you may wish to consult with a tax attorney for

greater certainty in this matter.

Answered on 1/15/13, 1:35 pm

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