New York, NY asked in Tax Law for New York

Q: if i got a house transfered to my name would i owe any back taxes on the house

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1 Lawyer Answer
James K. Riley
James K. Riley
  • Pearl River, NY
  • Licensed in New York

A: This is a common question in gifts and there are almost as many answers as there are facets--because there are a lot of different taxes. First, if there were back real estate taxes owed on the house--State, County, Town, City, Village, School, etc., those taxes always have to be paid or the local government can have a tax sale and auction to collect the back taxes. Second, in New York there is no gift tax on gifts if the house is valued at less than $2,000,000. Third, if you sell the house and if the person who gifted to you did not reserve life rights or a life estate, you will pay capital gains tax about 28% on the difference between the selling price and the tax basis of the person who gifted the house to you--there is no such tax if the person who reserved the life rights or life estate dies before you sell the house. Finally if the person who transferred the house to you or if you owe back income taxes to either the federal or state or any Medicaid lien, they will have to be paid.Talk to a knowledgeable attorney.

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