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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55467
Experience:  29 years of experience as a tax, real estate, and business attorney.
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My parents quit claimed their home into my sister and my names

Resolved Question:

My parents quit claimed their home into my sister and my names in 1992. They continued to live in the home until their death. We then cleaned and fixed it up and sold it. What are the tax consequences?
Submitted: 5 years ago.
Category: Tax
Expert:  Richard replied 5 years ago.
Good evening. Did they simply continue to live there because you allowed them to do so, or did they reserve a life estate in their deeds to you?
Customer: replied 5 years ago.

Unfortunately, no life estate, they just lived out their lives in their home.

Expert:  Richard replied 5 years ago.

Thanks. In that case, you would have long term capital gain on the sales price (less closing costs) in excess of your parents' basis in the property (their purchase price plus improvements) (plus any improvements you made). If you are in the 0% - 15% marginal income tax bracket, the capital gains tax rate is 0%; otherwise it is 15%.



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