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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4625
Experience:  35 years tax experience, including four years at a Big 4 firm.
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My question is regarding a house that my mother-in-law I

Customer Question

My question is regarding a house that my mother-in-law I would like to give to my husband and I as a gift. She will not be living in there but we have been living in this house for 22 years. My other question is how much capital gains would we have to pay on the house gifted to us from my mother-in-law that is still living
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Submitted: 11 months ago.
Category: Tax
Expert:  PDtax replied 11 months ago.

Hi from just answer. I'mCustomer I'll assist.

Expert:  PDtax replied 11 months ago.

There is no income tax on the gift. It is a gift, and could have estate tax consequences, but no income tax cost to either of you.

If and when you sell it, your basis in the property will be the donor's basis. The good thing is since it is your principal residence, the first $500,000 of gain will be tax free.

The gift is very likely tax free now and tax free when you sell.

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Customer: replied 11 months ago.
My situation is, the house that my husband and I have been living in for 22 years belongs to my mother-in-law. My mother-in-law has decided she would like to give us the house as a gift and she will not be living with us because she lives somewhere else, my question is capital gains what are we responsible for
Expert:  PDtax replied 11 months ago.

You are not responsible for any taxes on the transfer. Capital gains or income tax. You should file a gift tax return when you do the transfer, but there will be no tax to pay.