How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 14842
Experience:  15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
14155347
Type Your Capital Gains and Losses Question Here...
TaxRobin is online now
A new question is answered every 9 seconds

If I am transferring rental properties to a family member,

Customer Question

If I am transferring rental properties to a family member, do I pay capital gains taxes?
JA: I love the idea of making big money with investments, but there are so many things that could go wrong. The Accountant will be able to help you. Please tell me more, so we can help you best.
Customer: Do I have to pay capital gains tax when transferring rental properties to a relative?
JA: Is there anything else important you think the Accountant should know?
Customer: No
Submitted: 9 days ago.
Category: Capital Gains and Losses
Expert:  TaxRobin replied 9 days ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  TaxRobin replied 9 days ago.

No you would not because it is not a sale. You would need to file the form 709 to report the gift.

The person that you give these to would need to keep your cost. In other words their cost now is your original cost less depreciation claimed. If you have been depreciating the properties for a while their cost may be close to $0.

When they sell they would need to pay the tax on the sale.

If they continue to use as rental they start with the adjusted basis (as I described above) they cannot in any way use fair market value.

Please rate in a positive way (look for the STARS ) so I am credited with responding.

Related Capital Gains and Losses Questions