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.
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
