Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

CompanyLoan TypeAPREst. Pmt.

Do grantees of lady bird deed have to pay capital gains tax?

lady bird deed in florida
Will we have to pay taxes on the gains of the property value from the orginal cost of the property, or will we be taxed on the capital gains from the current assessed valuation of the property.

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Djsk,

Welcome to the forum.

The ladybird deed does not result in capital gains tax for the beneficiaries. The beneficiaries or the grantees will not receive any gains from the sale proceeds as such. This is because the original cost of the property is not taken into account. Instead, the stepped-up basis or the value of the property on the day of the last grantor's death is considered. And, the stepped-up basis is the value of the property at which it is put up for sale. Therefore, there isn't any gain and hence no tax on the gain is calculated.

Thanks,
James.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I want to transfer my deed from myself to myself by ladybird with my daughter as beneficiary. I already have homestead exemption in Broward County Florida. Will it effect my homestead status? Will it trigger the county to consider this a "sale" where they will re-assess my property and possibly increase my property tax? What is the amount of money for documentary tax: Is it nominal or is it based on the value of the porperty? thank you

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Donna,

Transfer of property can cause the house to lose its homestead status, in case the ownership of the property changes. In your situation, you will remain the legal owner of the house because you are transferring the property to your own name with your daughter as a co-owner. It should not affect the homestead status of your property. The transfer will not be treated as a sale and it will not trigger re-assessment of the property. The amount of documentary stamp depends on the value of the property. You can contact your local county recorder's office to know how the documentary tax is charged for property transfers.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is lady bird deed legal in Missouri and where can I find a form?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi dolores,

As per my knowledge, a lady bird deed is not applicable in the state of Missouri. However, the Missouri non-probate transfer laws do allow the use of beneficiary deeds. The deed allows you to transfer property to your beneficiaries while avoiding probate. Your beneficiaries get the ownership only after you are deceased. So, as a grantor you do retain your rights to the property. You can transfer the ownership through the beneficiary deed even though there is a mortgage on the property.

Thanks,

Jerry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Does Massachusetts, New Hampshire, Vermont, and Maine have Lady Bird Deeds?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Shirley,

Ladybird deed is applicable in the states of Ohio, California, Florida, Texas and Kansas. It is not applicable in Massachusetts, New Hampshire, Vermont, and Maine.

Take care.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My siblings and I inherited a home in Michigan from my Mother thru a ladybird deed this year. When we sell the home, will we be subject to the step up basis from the cost of my mothers original purchase price to the price we sell the home for or from the value of the property at the time of her death?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You will have to pay capital gains taxes based on the amount of profit that you make from the sale of the property.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes but is the profit amount based on the value from the time of my mother death to when we sell the home or is it from the time my mother purchased the home to when we sell the home? That is what I am not sure of. We were told with a Ladybird deed, the beneficiaries inherit property at a "stepped-up" basis, which is the value of the property on the day when the grantor passes away and that was one of the benefits of the Ladybird deed.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi tw,

As far as I know, you will have to pay the capital gains taxes depending upon the value of the property when your mother purchased the home.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am also in Mich. and my mother wants to have a quitclaim deed or a ladybird to avoid probate, is one better then the other? Can you wait to register the quitclaim?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome ter,

If the property is free and clear, then your mother can use a warranty deed in order to transfer the property in your name. Once the property is transferred in your name, you won't have to probate it once your mother is deceased. However, you should record the deed as soon as it is signed.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I need to put my son on my deed just incase I died but I don't want to have him loose the 1st time on buying his home too. will the lady bird be good ? can he be on more then 1 house?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi redy,

Once you transfer the property to your son, either through a [url=http://www.mortgagefit.com/quitclaim-deed.html]quit claim deed[/url] or a ladybird deed, he would become the owner of the property. Thus, he won't remain a first time home buyer. You can draft a will and declare him as the beneficiary. In that case, he would be able to own the property only after your death.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

is a ladybird deed legal in michigan?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jackson,

As far as I know, ladybird deed is legal in Michigan. However, you should contact a real estate attorney in this regard and take his opinion.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

For 2010, an individual who acquires property from a decedent (who died in 2010) can exclude $250,000 gain from sale of the residence. This assumes the deceased lived in the house 2 of 5 years. Presumably this is available to remainder of lady bird deed arrangement. See Internal Revenue Code section 121(d)(11).

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Does NC allow the use of LADY BIRD DEED and if not what is the typical time and cost of a probate

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi SandyA,

As far as I know, ladybird deed is acceptable only in the states of Florida, Texas, Ohio, California, and Kansas. It is not acceptable in North Carolina. In order to probate the will, you'll have to contact your attorney and he will let you know how much it will cost in your state and the required time to complete the process.

Thanks,

Jerry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am a Florida resident with a vacation home in Missouri. My mother transferred the deed of a farm to me in 2006 and I hope to sell it in 2010. Will I have to pay Missouri & Federal capital gains. She had owned the property for 40 years. The sales price is 300,000.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi precious,

If you are the present owner of the property and receive a profit from the sale of the property, then you will be liable for paying the capital gains tax.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Are these forms available on line - if so where?
Are they free or is there a fee?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi shadow,

Rather than going for the online forms, it will be better if you could contact an attorney and get the ladybird deed drafted from him.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is the Lady Bird deed applicable in NJ? Is there any way to avoid probate in NJ? Also, have you heard of Lady Bird funds?? Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Your query has been replied to in the given page:
http://www.mortgagefit.com/know-how/about49449.html

Take a look at it. Hope it helps you.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

is lady bird deed good in mich?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi may,

As far as I know, ladybird deed is not legal in Michigan. Nevertheless, you should contact a real estate attorney and take his opinion in this matter.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:06 | Post subject:

Page loaded in 0.593 seconds.