Chicago, IL asked in Real Estate Law for Michigan

Q: I transfer a Mi house to my daughter & son. They sold it after 4 years and 10 months. will they pay capital gain?

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1 Lawyer Answer
David Soble
PREMIUM
David Soble
Answered
  • Farmington Hills, MI
  • Licensed in Michigan

A: Generally, the exemption for capital gains from a home sale works as follows: you must have owned and lived in your home as your principal residence an aggregate of at least two of the five years before the sale (this is called the ownership and use test). You can claim the exclusion once every two years.

This has been the tax rules until the 2018 Tax Act. You should contact a CPA to delve further into your situation.

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