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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54710
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I am single and purchasing a house. I am paying cash. I would

Customer Question

I am single and purchasing a house. I am paying cash. I would like to add my 2 brothers
on the title. Both brothers are also single. We plan to keep property in family. Is there any tax reporting required ?
Submitted: 6 years ago.
Category: Tax
Expert:  Richard replied 6 years ago.

Good evening. No....all you need do when purchasing the property is to purchase it in the names of all three of you. There is no specific tax reporting that you need to do.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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Customer: replied 6 years ago.
If we would sell property in say 10 yrs how would the gain be taxed.
Expert:  Richard replied 6 years ago.

You would each own an undivided 1/3 interest in the house...so if you purchased it for $300,000, you would each have a basis of $100,000 in the house. Then, let's assume you made no capital improvements over the 10 years and sold it 10 years later for $600,000. Then would each report proceeds of $200,000 which would give you each a $100,000 gain on the property. You would owe tax on this gain at the long term capital gain rate in effect at that time...and if it's the personal residence of any of you, if the capital gain exclusion from gain on the sale of a principal residence is still in effect, this would exclude you being liable for the tax on the gain.

 

 

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