Have a Tax Question? Ask a Tax Expert
Hello and thank you for using Just AnswerDepending on wht the condo was used for needs to be looked at but if this was a vacation property for you then you will each show a sale in relation to your ownership percentage.
You are not allowed to exclude if it was not your main home.
You will split the gain of $125000 and show the sale on Schedule D for each of you with your returns.
The Capital Gain will be less if you held the property for longer than 1 year.
Your rate will be 10% or 15% it will be determined by your total income form all earnings in the year of sale.
As far as adding the children now that would not be a good aidea. When they inherit they will be able to use the step up in basis and that could mean that they would have no gain at all depending on fair market value when they inherit
If you place them on the property now then their basis is whatever they add to the money to purchase ($0 probably) so they would pay much more in tax
Plus you could have a gift tax situation for gifting them the percentage in the property
You say minimal earnings
If you used this as rental then you must recapture any depreciation you have claimed or could have claimed. Have you been filing a Schedule E and claiming this as rental?
Yes you can do that.
For tax purposes, you each have your basis inthe property based on what each pays to acquire
This means that if the unit is sold then the basis goes against the sales price to see if any gain is there to tax
Yes, per their share in the property
If you all get along very well
Depends on the property
One minute and I will get that for you
That could be and then the sale would just be on her taxes and the others could purchase her portion
Canada is alot like the US when it comes to sale of personal use property
This is all about Canadian:If you sell your home for more than what it cost you, you usually do not have to report the sale on your return or pay tax on any gain as long as:
Regardless of whether or not the sale of a capital property results in a capital gain or loss, you have to file a return to report the transaction (even if you do not have to pay tax). Unlike the US where if you sale your main home and can exclude you do not report
You will inherit her portion and have a stepped up basis. This means her portion will be yurs at the fair market value on date of death.You asked about Canada, were you just curious or are you Canadian and own this property in Florida?
Does no good to add them for tax purposes.
Well if you sale the property then they will withhold 30% at the time of sale. You can file a US 1040NR return and request refund.
The tax withheld can be offset against the U.S. income tax payable on any gain realized on the sale, and refunded if it exceeds the tax liability. The 10% withholding requirement on the gross sales price applies regardless of the sellers adjusted basis in the property.
There are two exceptions to FIRPTAs 10% withholding requirement which may reduce or eliminate the requirement. Your sales price should save you
Since it is below $300000 then they may not withhold
As long as whoever buys it wants it for their main home
Also the estate tax is what must have saved you when you inherited
The US Estate tax for Nonresident aliens is higher but if this was the only property then it slipped under due to value
Well if a condo is all US property then you should not be too worried
The U.S. taxable estate for a Canadian who is not domiciled in the U.S. is equal to the deceaseds property situated within the United States. This includes: real property located in the U.S. certain tangible personal property located in the U.S. shares of U.S. corporations, regardless of the location of the share certificates and regardless of where the shares are traded debts of U.S. persons, including the U.S. government interests in partnerships carrying on business in the U.S.
Yes, in your situation it would be better.
I normally tell people no but if you are not a US resident then they should start off as owners too
To do what?
You should have your own for the closing and to make sure the joint ownership is spelled out legally.I am here and you can always come back to Just Answer. I am not allowed ot solicite users of this site for work away from this site.
No, thanks, XXXXX XXXXX am not a lawyer nor am I in Florida. Check with the real estate professional that will sale the property for you. They can advise on a lawyer in the area.You can always come here and speak with me even after you click ACCEPT.
You are welcome and yes you can always ask for me. Just put "For TaxRobin in the start of the question. Yes there are lawyers so make sure you say your question should be for a real estate lawyer when you post it.