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capital gains

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cjbhs Guest	Posted: Wed Apr 06, 2011 9:24 pm    Post subject: capital gains Like 0 Dislike 0 I purchased a home in 1970 and am thinking about quit deeding it to my son with a life estate. My son and his family have resided in this home/property since 1987 and it has never been used by me as a rental property--nor has it been my main residence since 1987. I intend on Quit Deeded this property with a life estate for $0 to my son. Question: How is capital gains assessed on this quit deeded property that is estimated at $450,000 in 2011 and was originally purchased in 1970 for $80,000. There has been a great deal of home improvements to the property by me and I would like to know how these improvements enter into consideration towards capital gains.
jameshogg Joined: 20 Dec 2005 Posts: 10460 Location: Nevada 987.57 Dollars($)	Posted: Thu Apr 07, 2011 12:43 am    Post subject: Like 0 Dislike 0 Hi cjbhs, The person gifting the property will be liable for gift taxes. As you're not selling the property, you won't incur any profit from it. Thus, you won't be liable for paying any capital gains tax. Thanks
cjbhs Guest	Posted: Thu Apr 07, 2011 9:05 am    Post subject: capital gains assessment determinations Like 0 Dislike 0 First, thank you so very much for all of your assistance. It is greatly appreciated. On a follow up question, since I will be gifting to my son the aforementioned property/home for $0--- in the future when he sells the property WHAT BASE will HIS capital tax be determined from? (Is it from my original purchase price of $80,000 plus the cost of all of my home improvement SUBTRACTED from the $450,000 (which is the property assessed value this year) OR ????????
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Thu Apr 07, 2011 7:23 pm    Post subject: Like 0 Dislike 0 Hi cjbhs! Welcome to forums! As far as I know, the original price of the property will be considered as the base in order to determine the capital gains tax. Feel free to ask if you've further queries. Sussane
G johnson Guest	Posted: Mon Apr 11, 2011 10:27 am    Post subject: tax obligation on deed in lieu in state of Georgia Like 0 Dislike 0 We are thinking of doing a deed in lieu on my mothers house. she is in decling health and we have been trying to sell her house for 3 years. She does qualify. What would be her tax obligation on this property if she does the deed in lieu, owes $90k on mortgage Dekalb Co, Georgia
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Mon Apr 11, 2011 9:55 pm    Post subject: Like 0 Dislike 0 Hi G johnson! Welcome to forums! After a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property. This forgiven debt will be considered as her income and she will be liable for paying taxes. But if the property is her primary home, then she won't have to pay any taxes depending upon the Mortgage Debt Relief Act. Feel free to ask if you've further queries. Sussane
Noenoeclue_is_me Joined: 15 Apr 2011 Posts: 45 12.63 Dollars($)	Posted: Fri Apr 15, 2011 7:24 pm    Post subject: Like 0 Dislike 0 I just thought that I would add this - if someone owns and lives in a house for at least 2 years, then a single person can make 250k in profit and twice that if they are married and not owe any capital gains taxes.

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