Lanham, MD asked in Estate Planning, Elder Law and Tax Law for Maryland

Q: My mom wants to sign over her house to me & then she will come to live with me. Will I have to pay capital gains

My objective, is to NOT have her go into a nursing home if it comes to that point, but to have a day nurse come into my home.

1 Lawyer Answer
Cedulie Renee Laumann
Cedulie Renee Laumann
  • Estate Planning Lawyer
  • Crownsville, MD
  • Licensed in Maryland

A: Capital gain is calculated and paid when a home is sold for profit, not when it is transferred without consideration. To figure out your potential capital gains liability you would need to talk to an accountant or tax professional and know the basis in the property and the anticipated future sale price.

Note that if property is transferred as a result of someone's death (whether by an enhanced life estate deed or through a Will) the inheriting party gets a "stepped up" basis which tends to minimize capital gains tax if the property is sold shortly after such inheritance.

While I hope this general information helps it is not a substitute for sitting down with a tax professional / accountant / lawyer and going over the specifics of your particular situation.

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