Salem, MA asked in Real Estate Law and Tax Law for Massachusetts

Q: After receiving money from a house sale do i have to pay taxes on it in april or can i gift it to my wife?

My grandparents house was sold and it will be split 5 ways. After taxes and fees ill receive 42,800, will i have to pay taxes at the end of the year for it or can i gift it to my wife or use most of it as a down payment for my first house ?

If i do have to pay taxes how do i figure out what to put aside so i can pay it all at once?

Related Topics:
3 Lawyer Answers
Christopher Tolley
Christopher Tolley
  • Boston, MA
  • Licensed in Massachusetts

A: The answer to your questions requires more time and expertise than an online forum like this can provide. You really need to consult with a tax professional like a CPA on this. It will be well worth the money you spend in fees to them.

Bruce Alexander Minnick agrees with this answer

A: Generally, federal gift taxes do not apply until the value of the gift exceeds $30,000 per person. However, you should consult a tax lawyer in Massachusetts because they may also tax gifts.

Linda Simmons Campbell
Linda Simmons Campbell
  • Tax Law Lawyer
  • Burlington, CT

A: You need to consult with your accountant. They can determine what you will owe if anything. For example, if you inherited the property you will get a "step up" in the basis to the fair market value at the time of the death of the person who left you the property. If that is the case then you may not owe anything unless you held onto the house for a long time.

There are too many variables for us to give you a good answer on this format.

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.