Knoxville, TN asked in Estate Planning, Real Estate Law and Tax Law for Tennessee

Q: my father quit claimed his home to me in Nov. 2019. We are trying to sell the home, due to he lives with me now. can i

quit claim it back to him? Would this avoid capital gain at sale? he has lived there for 30 years and out for 3 months

1 Lawyer Answer

A: You can. As long as it was his primary residence for 2 of the last 5 years the first $250k of gain will be excluded.

You still have a gift to you then a gift back, then a sale with a lump sum of cash. So your going to need to look at gift tax returns, likely no tax owed, and potential issues with SSI/SSD or Medicare/caid. This could have unentended consequences.

It's probably worth paying a local attorney for an hour's time to go over the entire situation and make sure the transfer back doesn't make things worse.

Nina Whitehurst and Anthony M. Avery agree with this answer

1 user found this answer helpful

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