if my parents gift me a house do I have to pay capital gains on it?
142068
Only if you sell it.  You take their basis, but only pay a gain if you sell it.
80565
The amount of the mortgage(s) does not affect the capital gain.  Gain is determined by the difference between the net sales price and your basis in the house.  In most cases in which you have lived in the house for two of the past five years, the gain is not taxable.
393440
She can do this, but it may count as a taxable gift since she will have basically deeded over 1/2 interest in the property to you.\nBetter that she puts the property in a trust with her as the trustee and you as beneficiary.  It can then pass to you with no tax consequence and avoid probate.
125171
Yes.\n\nYour modified adjusted gross income is just adjusted gross income with some things added back in. And Capital gains are part of adjusted gross income.\n\nKeep in mind that real estate has special rules and although - to you capital gains are one number, the rules for figuring it out have little to do with reality. \n\nIf it was a rental property then you have depreciation to consider also if you used part of your home as a home office deduction, if you lived there you get a certain amount before you have to start counting it, if you didn't own it for long enough you will get screwed. If you do a 1031 exchange you can put off the whole thing until later. If you die the taxes can be avoided all together for those that inherit it if done right.
633015
First, be aware the tha IRS might not accept that the stock was really a gift if you have an employment relationship with the donor's family.\n\nAssuming that they treat the original transaction as a gift, you inherit the donor's basis. If you sell 25% of the stock now for $9,500, you would have a capital gain of $3,000 ($9,500 - 25% of $26,000). This would be a long-term gain eligible for a reduced tax rate (5% or 15%). The tax you would owe would depend on the complete details of your tax situation.\nThe amount you are receiving is not a dividend and in most circumstances there would be no reporting requirement imposed on your employer.
72470
You make them a member of the company and will them your membership shares.  The basis of the transfer is based on your original basis in the stock (the cost).  Your childs basis becomes the value on the date of the inheritance/transfer.\n\nI believe this is how it will work (i could be wrong here), so you should check with a tax professional.
743449
If this is your primary residence there is no capital gains tax. The purchasor will only pay stamp duty at 3% (£10,800).\nIf this is not your promary residence you will also pay capital gains tax. But to calculate that you will need to give the price you bought the house for and how long you have held it.\nCapital gain will be at gain (£360,000-purchase price) adjsted for taper relief (depends on how long you have held it). \nAlso any improvements you have made can be taken into account in the cost (e.g. extensions).
906828
For Federal income taxes, the state you are in doesn't matter.  For state tax purposes, it depends on the state.  In any case, you only pay capital gains tax if you sell something at a gain.
773102
Yes, probably if the rent is fair; although it would be wise to get the approval of all her heirs. And if she has a durable ("enduring" in England) power of attorney, you need to get permission from the POA holder.\n\nBut charging rent has tax consequences: income, capital gains, estate. And in both the USA and the UK you may forfeit part of the exemption from paying capital gains tax on sale.\n\nAnd if no rent is charged, there's a discussion going on now among practicing lawyers as to whether gift tax is due. Probably not in your case; but Eliot Spitzer (governor-elect of NY) lives in a NYC mansion owned by his father, and his father does pay gift tax on the rental value every year. According to the NY Daily News.\n\nOften charging rent to a parent makes good tax sense; and also reduces the size of an estate somewhat. And in the UK paying 20% basic rate instead of 40% IHT makes sense. In the USA estate duty is up to 55% in some states, so it may make even more sense. At the risk (as I wrote above) of perverse tax consequences later.\n\nBut there should be a family consensus before you try this. Will contests can be bitter, and expensive.
543390
No, Only investment in residential flat and not any shop  is allowed for the purpose of exemption from Capital Gains u/s54 of the I T Act.\n   Please consider , and this is also related to our earlier question regarding the best option for you to save taxes . following option\n\n   1. Invest in some residential flat with a view to sell it after three years. You will get exemption from Capital Gains, you will get Indexation benefits when you will compute the capital gains on the flat sale and mind you the  most permanent appreciation in growing India is Real Estate  in India right now. So overall you will get highest return from your investment. Moreover, if you also take loans for purchase of flat , that will further reduce your liability to tax for three years.\n2. Keep the amount of capital gains in Capital Inc&#92;vestment bond and as per law if you do not invest it withing next two years from the date of transfer, the amount will be the capital gain in the year in which such three years from the date of transfer of the flat completes. Thus you are only forwarding your tax liability by some years.\n3. Pay the tax.and be in peace!
1099746
You have no obligation, morally or otherwise, to pay your parents' debts.  Before you get any inheritance, however, the debts will have to be paid out of their estate.
523260
If you are the receiver of the inheritance, the tax has already been paid by the estate.  The money you received is tax-free.  My condolences on your lose.
27709
We recently purchased a new house and wanted to sell, and reinvest the money into a new one... we called the IRS directly to find out if we'd be charged a capital gains tax, and the answer was yes.  If you sell your primary residence within 2 years, you will be charged a capital gains tax.  However, there could be good news...\n\nLast year if you made 49,5k or less you were only charged a 5% capital gains tax.  If you made more than that, you would be charged 15%.  To help maybe smooth the hit over on your $35k taxes...\n\nYou subtract legal, agent, long-term house upgrades from that number and only claim that as profit from the sale.  So if you made 35k from the sale, but your agent's fees were 10k, legal were 5k and house improvements to the old house were 1k, you would only claim 19k.  \n\nPlease, please please double check this with the IRS and/or your accountant.\n\nOh - and if you moved because you either lost your job, or relocated to a different state (and there are some other things), you could be exempt altogether from the tax.\n\nGood luck!!
201789
If the house was already in the children's names, then there was no inheritance.  Therefore it would be considered a sale of real estate.  I believe the basis of the house would have been the basis on the date of the transfer, not the appraised value.  Don't forget to add the cost of any improvements to the original basis.\n\nFor more information go to the IRS website and download Publication 523 - Selling Your Home.  If that doesn't help, call the IRS directly.
437923
The quick answer to your question is yes you can purchase a house and give it to anyone you desire. Are you thinking about giving the house to a family member?\n\nThe reality of the matter is that you must consult a tax or CPA and especially a real estate attorney to find out the easiest way to do this and what you should do to avoid a very difficult potential tax problem. \n\nIf nothing else the CPA or tax expert is probably the most important person in this situation.\n\nI hope this has been useful to you in some way, good luck
355256
At this point, no.\n\nI think your understanding of how it is handled is incorrect.   Assuming you use the house as your personal residence for two of the last five years, you can deduct up to $250k of capital gain if you file anything except MFJ.  If you file MFJ, then you can deduct up to $500k.\n\nIf your basis is $500k, file single, and sell the house for $750k, the gain isn't taxable.  Any amount over $750k would be taxed as long terms capital gains.
490134
The current tax law says you (and your spouse, if married, filing jointly) can take capital gains of up to $250,000 each without paying capital gains tax AS LONG AS you have a). lived in the house a total of 24 months during the last five years (summers, winters, whatever) and b). it is your primary residence (you should have your driver's license at this address).  You will pay capital gains tax on anything over that amount.\n\nThere is no lifetime limit on how many times you can take this exemption, however, you can't take it more than once every two years.