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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 34272
Experience:  16 years real estate, Realtor. Landlord 26 years
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My parents signed over their house to me and my brother in

Customer Question

My parents signed over their house to me and my brother in 2010. We are now selling the house. Is there any way to avoid/decrease capitol gains tax.
House was purchased in 1960 and is paid for.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

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When parents signed over the house, you would have taken it at their "basis" for taxation purposes, which is what they paid for it plus any improvements over the years.

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Unfortunately, the only way to decrease any long term capital gains taxes that are due would be if you or brother lived in the house for at least 2 out of the last 5 years..

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You might be able to postpone any capital gains taxes if you did a 1031 like kind exchange where you put that money into another investment property, but that is about the only other way to defer any taxes for some time.

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I am very sorry that I don’t have better news, but please understand that I do have an ethical and professional obligation to provide customers with legally correct answers based on my knowledge and experience, even when I know the answer doesn’t make the customer happy...

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.thanks

Barrister

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