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 Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13625
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

I have lived in a house owned by my son-in-law for the past

Resolved Question:

I have lived in a house owned by my son-in-law for the past three years. The second floor is rented to a third party. My son-in-law wants to transfer the house to my name. If he does so, how long do I have to wait to sell it and what are the capital gains implications?
Submitted: 4 years ago.
Category: Tax
Expert:  Robin D. replied 4 years ago.

Robin D :

Hello and thank you for using Just Answer
If your son-in-law gifts the property to you then you will need to meet the rules to exclude as your main home if you sale and do not wish to pay capital gain on the difference in sales price and basis.
You are eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its sale.
So although you would meet the used portion you would still ned to own the property for 2 years.

Robin D :

If you continue to rent out the portion then you will not be allowed to exclude the depreciation on that portion.

Customer:

About 80% of the house' value is due to remoddeling, reconditioning. Does thta get included in basis or is it only based on purchase price?

Robin D :

You will use the basis of the giver and this will include capital improvements also.

Customer:

Thank you!

Robin D :

You are welcome

Robin D :

You can always come back even after you click ACCEPT

Customer:

Good to know!

Robin D. and 3 other Tax Specialists are ready to help you

Related Tax Questions