Posted on: 08th Sep, 2010 08:24 am
My parents want to deed us 4 acres of their farm on which they live, they bought it about 35 years ago. There is a question about paying capital gains tax for them if they sell it to us. The question is, if they decide to sell the land to us for what they bought it for 35 years ago, will they have to pay capital gains on it, since there is no profit involved?
Some family members will deed land for one dollar, is that why that is done?
Some family members will deed land for one dollar, is that why that is done?
Hi littlequeen!
Welcome to forums!
If there is no profit from the sale of the property, then your parents will not be liable for the capital gains taxes. If your parents wish, they can transfer the property to you for even $1 as well. But it's not mandatory for them to do so.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If there is no profit from the sale of the property, then your parents will not be liable for the capital gains taxes. If your parents wish, they can transfer the property to you for even $1 as well. But it's not mandatory for them to do so.
Feel free to ask if you've further queries.
Sussane