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
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
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.
