Posted: Tue Aug 19, 2008 6:20 pm Post subject: Tax liablity on selling of joint house. MI
My mother passed away. The home was jointly owned with me being on the deed as well as her's. I haven't lived there for 24 yrs. What kind of taxes will I be expected to pay? Capital gains? the home was worth 12.5k when my parents bought it and they did have a garage built, fireplace, siding,etc. since living there. So some improvements have been done. Unfortunetly I'm unable to locate any of the paperwork with those improvements.
Since you have been on the deed, therefore you'll have to pay the capital gains tax on the profit, if any. As impovements have been done, so there will be an appreciation in the home value. I suppose when the home is appraised by the buyer's appraiser, they'll get the appreciated value itself. So, perhaps the paperwork won't matter. _________________ Procrastination is the enemy of your financial sucess
Actually, I don't think you will be subject to capital gains, b/c you received the home through an estate. I think the first $1M that you inherit will go untaxed, so you should be fine...unless you inherited more than $1M...in which case, YOU"RE STILL FINE!
Check with an estate lawyer to make sure of the guidelines, but I think this is accurate.
And don't worry about finding receipts for improvements...if you plan to market the home for sale, then contact the Realtor of your choice and they will do a market survey to determine its' value.
Their goal is to price it as high as they can, because the higher the price, the higher their commission. In today's market, it is imperative that you use someone with experience and someone whom does a lot of business in the area you Mom lived.
cinred41
