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Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 34486
Experience:  30 years of real estate practice experience.
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My mother purchased a house in Kansas in 1985 and put only

Customer Question

My mother purchased a house in Kansas in 1985 and put only my brothers name and her name on the deed. She died in 11/2012 and left instructions that i was to get half of the profit from the sale of the house. My brother sold the house last week. No probate or will.Question is, what are the tax ramifications for him and for me? Thanks.
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  Loren replied 11 months ago.

Good afternoon. I am Loren, a licensed attorney for over 30 yrs, and I look forward to assisting you. My condolences for your loss.

Did your brother and late mother own the property as tenants in common or as joint tenants with right of survivorship?

Customer: replied 11 months ago.
I'm not sure
Expert:  Loren replied 11 months ago.

It matters in terms of your rights.

Customer: replied 11 months ago.
He is sending me $42K which i'm happy with. We're concerned about the federal taxes.
Expert:  Loren replied 11 months ago.

Thank you for the additional information there is going to be capital gains owed on the appreciation.

The portion given to you is a gift. So, you do not have any taxes to pay personally. Just your brother on the gains from the sale of his property.

Customer: replied 11 months ago.
purchased for $92, sold for $185K. I thought you had a $250K capital gain?
Expert:  Loren replied 11 months ago.

Did your brother live in the home as a primary residence?

Customer: replied 11 months ago.
No, he has another house close by. But his name is ***** ***** the deed, just his wife's name. I think he claimed my mom's house as a primary residence for tax purposes.
Expert:  Loren replied 11 months ago.

Unless he actually and physically lived there he is not entitled to the exemption from capital gains. Additionally, if it was in his wife's name, then she would have had to actually live there.

Expert:  Loren replied 11 months ago.

I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.

Expert:  Loren replied 11 months ago.

Are you still online with me?

Customer: replied 11 months ago.
let's assume he claims joint tenant with my mom. She dies and wishes to leave me her share of the house. No will. He doesn't owe taxes because of the $250k rule. He wires me the money. Will i owe taxes?
Expert:  Loren replied 11 months ago.

Without a will you have no legal claim to the property. Anything your brother sends you is a gift and there is no tax assessed to the recipient on a gift.

If he is the surviving joint tenant then your brother just gets the property upon your mother's death as the surviving joint tenant. It happens automatically, by operation of law, outside of probate.

Expert:  Loren replied 11 months ago.

Did you have further questions? Have I answered your question?

Expert:  Loren replied 11 months ago.

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