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Inheritance And Capital Gains
Summary
When inheriting a house from a trust, the basis for long-term capital gains is usually the fair market value at the time of the parents death. In New York, protecting a house from nursing home costs depends on factors like titling and legal arrangements. Transferring a home via quitclaim deed affects the cost basis for capital gains taxes. The $250,000 exclusion applies if the home was a primary residence for two of the last five years. Consulting a tax professional or elder law attorney is advisable for personalized advice.Full Conversation
While I am alive, is the house protected from a nursing home I may need to go into?
In New York, whether your house is protected from being used to pay for nursing home costs depends on several factors, including how it's titled and any legal arrangements you've made, like setting up an irrevocable trust. Consulting an elder law attorney can provide personalized advice based on your situation. Do you have any specific details about the property's ownership or trust setup?
If I put my home on a quitclaim deed for my daughter, when I die and she sells the home, what is the cost basis used for long term capital gains taxes?
If you transfer your home to your daughter via a quitclaim deed while you're alive, the cost basis for long-term capital gains taxes when she sells the home will generally be your original purchase price plus any improvements you made. This doesn't provide a "step-up" in basis like an inheritance would.
What about the first $*,* tax free profit I heard about that is long term capital gains tax free?
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In the U.S., individuals may exclude up to $*,* ($*,* for married couples) of capital gains from the sale of their primary residence, provided they have lived in the home for at least two of the five years preceding the sale. Is there anything specific about the property or your situation that might affect this exclusion?
In the U.S., individuals may exclude up to $*,* ($*,* for married couples) of capital gains from the sale of their primary residence, provided they have lived in the home for at least two of the five years preceding the sale. Is there anything specific about the property or your situation that might affect this exclusion?
What about if it is on a quitclaim deed, I die with my daughter's and my name on it. Let's say i purchased the home for $*,*, upgrades are $*,* and my daughter sells the home for $*,*. Are my long term capital gains $*,* or $*,*?
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If you and your daughter are joint owners on a quitclaim deed, upon your passing, she may receive a "step-up" in basis for your portion of the property. This means her basis could be the fair market value at your death for your share. However, her original basis from the deed could apply to her portion, typically resulting in a split basis calculation. The exact gain depends on how the deed is structured and state laws. It might be helpful to consult a tax professional or attorney for specifics.
If you and your daughter are joint owners on a quitclaim deed, upon your passing, she may receive a "step-up" in basis for your portion of the property. This means her basis could be the fair market value at your death for your share. However, her original basis from the deed could apply to her portion, typically resulting in a split basis calculation. The exact gain depends on how the deed is structured and state laws. It might be helpful to consult a tax professional or attorney for specifics.
The quitclaim states that she is *% owner. She has not lived in the house for 18 years.
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It sounds like you're dealing with multiple complex issues regarding property ownership, capital gains, and estate planning. Here are some general points to consider:
- If your daughter is *% owner, the cost basis for capital gains is generally your original purchase price plus improvements.
- The $*,* exclusion applies only if the property is a primary residence for at least two years.
- The "step-up" in basis does not apply if the property is transferred via quitclaim deed during your lifetime.
These matters can be intricate, especially with tax implications. Consulting with a tax professional or elder law attorney may be beneficial. Would you like more detailed guidance on any specific aspect?
It sounds like you're dealing with multiple complex issues regarding property ownership, capital gains, and estate planning. Here are some general points to consider:
- If your daughter is *% owner, the cost basis for capital gains is generally your original purchase price plus improvements.
- The $*,* exclusion applies only if the property is a primary residence for at least two years.
- The "step-up" in basis does not apply if the property is transferred via quitclaim deed during your lifetime.
These matters can be intricate, especially with tax implications. Consulting with a tax professional or elder law attorney may be beneficial. Would you like more detailed guidance on any specific aspect?
Any two years or is there a minimum or maximum number of years to consider? I heard that they must be * out of the last five years.
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In the context of the $*,* capital gains exclusion for a primary residence, you need to have lived in the home for at least two out of the last five years before the sale. This is a minimum requirement. Would you like more detailed guidance on any specific aspect?
In the context of the $*,* capital gains exclusion for a primary residence, you need to have lived in the home for at least two out of the last five years before the sale. This is a minimum requirement. Would you like more detailed guidance on any specific aspect?
When you say "you," are you referring to me or my daughter?
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When I say "you," I'm referring to the person asking the question or the individual involved in the legal situation. In your case, it would be you in terms of understanding how these rules apply to your situation with your daughter. If you have any other specific questions about your situation, feel free to ask!
When I say "you," I'm referring to the person asking the question or the individual involved in the legal situation. In your case, it would be you in terms of understanding how these rules apply to your situation with your daughter. If you have any other specific questions about your situation, feel free to ask!
I have lived in the house for the past 43 years, my daughter lived there for 24 years but not in the last 19 years.
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Your situation involves complex tax and property ownership questions. Here are some key points to consider:
- If your daughter is the sole owner via quitclaim deed, her cost basis is your original purchase price plus improvements.
- The $*,* exclusion applies only if the home was her primary residence for two out of the last five years.
Would you like more detailed guidance on any specific aspect?
Your situation involves complex tax and property ownership questions. Here are some key points to consider:
- If your daughter is the sole owner via quitclaim deed, her cost basis is your original purchase price plus improvements.
- The $*,* exclusion applies only if the home was her primary residence for two out of the last five years.
Would you like more detailed guidance on any specific aspect?
No thank you
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It seems like you're dealing with a complex situation involving inheritance, capital gains, and property ownership. Consulting a tax professional or elder law attorney would be beneficial to ensure you navigate these issues effectively. If you have further questions or need more guidance, feel free to ask!
It seems like you're dealing with a complex situation involving inheritance, capital gains, and property ownership. Consulting a tax professional or elder law attorney would be beneficial to ensure you navigate these issues effectively. If you have further questions or need more guidance, feel free to ask!
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