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Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 41591
Experience:  Texas Attorney for 30 years dealing in real estate
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I am trusty of my Mothers condo. I have an offer from a

Customer Question

I am trusty of my Mothers condo.
I have an offer from a buyer but mom is still alive.
I was told to sell it within 6 months of her death to pay a lover tax.
What is the savings if I wait to she dies?
Can I sell now and have buyer pay me the savings in taxes.
How do I figure the amount out?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the expert helping you today.

She may not owe any capital gains taxes if she can claim the $250,00 exemption.She is allowed costs of sale, repairs, etc and then the $250,00 of any profit assuming she meets the requirements to claim the exemption.

Generally, you can exclude up to 250,000 dollars in capital gains if filing singly or 500,000 in capital gains if filing jointly. As you have noted, this is predicated on owning and living in the home for at least 2 of the last 5 years.


If she is going to net out more than $250k you would need a CPA here to figure out the amount here, it is based on estimated income taxes including this amount.

For common financial investments, the maximum rate on long-term gains is 20% and applies to those in the top income tax bracket. Individuals in the 25% to 35% brackets will be subject to a 15% long-term capital gains rate. Those in the 10% and 15% brackets have a 0% capital gains rate.

She is probably better off selling this now as you propose to take advantage of the exemption under current law.

I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.

Expert:  Ray replied 1 year ago.

There is a state tax here too.

For every Massachusetts county except Barnstable and the Islands, the tax is $4.56 per thousand of the purchase price on the deed. For example, for a $500,000 purchase, the seller must pay $2,280 in taxes.

Expert:  Ray replied 1 year ago.

Second reference on the tax stamps..

This tax on selling a home is known as the Massachusetts tax stamps. In most areas of Massachusetts the tax stamp equals $4.56 per thousand dollars of the sales price of the home.

So for example if you sell your home for $400,000, you would owe the State of Massachusetts $1824.00 ($4.56 x 400). The money paid for the tax stamps is income given to the appropriate registry and is forwarded on to the Commonwealth of Massachusetts Department of Revenue.

While most of my Real Estate sales are in Middlesex, Worcester and Norfolk Counties, it should be noted that in Barnstable County the tax rate is $5.70 per thousand so the cost involved with selling a property is slightly higher. The Dukes and Nantucket Counties also charge an additional 2% of the sales price that gets paid to the local land bank commission.