Posted on: 08th Aug, 2007 08:31 am
my dad filed a quit claim deed on his farm in 1991 to me, my sister, and brother. he retained the right to income from farm and paid the taxes. he died in 2005 and we sold the property in 2007. do we have to pay capital gains from 1991 or 2005??
If a profit was made from sale then only capital gain taxes will have to be paid.
I would also let you know that if the profit made out of sale is less than the allowed exemption available on capital gain taxes then no taxes will be due. How much profit was made from sale?
I would also let you know that if the profit made out of sale is less than the allowed exemption available on capital gain taxes then no taxes will be due. How much profit was made from sale?
Welcome Vonnie,
No, you don't have to pay capital gains as calculated from 1991 to 2005. The capital gains taxes should be paid in this year itself and only if you ahve gained from the sale.
Earlier the property was quitclaimed to you and for that you need not pay taxes. Your father (the grantor) is expected to have paid the gift taxes (if no exemption was available) as transfer of property by quitclaim deed is a gift.
Thanks.
No, you don't have to pay capital gains as calculated from 1991 to 2005. The capital gains taxes should be paid in this year itself and only if you ahve gained from the sale.
Earlier the property was quitclaimed to you and for that you need not pay taxes. Your father (the grantor) is expected to have paid the gift taxes (if no exemption was available) as transfer of property by quitclaim deed is a gift.
Thanks.
"My Dad filed a quit Claim Deed on his farm in 1991 to me, my sister, and brother. He retained the right to income from farm and paid the taxes. He died in 2005 and we sold the property in 2007. Do we have to pay capital gains from 1991 or 2005??"
Please go through this page to know more about capital gains tax exemption that is available on profits made from sale of house & the requirement to fulfill to qualify for the exemption: http://www.mortgagefit.com/know-how/capitalgainstax.html
Miller
Please go through this page to know more about capital gains tax exemption that is available on profits made from sale of house & the requirement to fulfill to qualify for the exemption: http://www.mortgagefit.com/know-how/capitalgainstax.html
Miller