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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My brother in-law bought a duplex in Denver with my now

Customer Question

My brother in-law bought a duplex in Denver with my now deceased father. My deceased father continues to be on the title. My sister is still married to my brother in-law. They want me to sign over to her my interest. However, I am concerned about having to pay taxes on a property that is currently worth 365,000 to 400,000. My share could be 92,595 or 100,000. My understanding is I would have to pay gift taxes on the full amount or my share or the full market price of the property? Also, would it be cheaper for me to pay taxes on my share instead if I kept my interest?
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Submitted: 5 months ago.
Category: Tax
Expert:  Lane replied 5 months ago.

Hi,

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Gifts taxes are only paid once the giver has gifted morenthan the lifetime exemption ($5,450,000 in 2016)

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So, even though you'd should complete a gift tax form - form 709 (for giving away more than $14,000 in a year (the annual gift tax exclusion), there would be no tax due.

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The gift tax form is just used to track against that lifetime exemption.

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So gifting away costs nothint (and relieves you from paying any ongoing property taxes)

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Now, if you SOLD it to someone, there would be a capital gain on the differents in the sales price and your basis (which would be the value of your portion on the date of death of your father)

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And long term capital gain tax would likely be 15% (maybe avan zero on a portion of it) BUT you'd have the after tax cash from the sale - economically better than giving it away ANY day

Expert:  Lane replied 5 months ago.

And again, if you KEEP you share ( can't see why you'd want to give it away ) your only tax until you sell it would be the property taxes on your 25% or so ownership.

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But if youn are going to transfer, You should ask for a fair price ... If it was left to you in the will (or by bloodlines if there was no will) It's yours to sell

Expert:  Lane replied 5 months ago.

Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

JustAnswer will not credit me for the work unless you do.

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Thank you!

Lane

I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, on three continents, since 1986

Customer: replied 5 months ago.
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Expert:  Lane replied 5 months ago.

Looks like you've requested a call?

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Let me paset what I'm seeing on my screen

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"(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed."

Expert:  Lane replied 5 months ago.

Would you like a call?

Expert:  Lane replied 5 months ago.

Onluy accept that if you'd like to talk (made it for the smallest amount they'll allow ($5)

Expert:  Lane replied 5 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane

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