What are the tax liabilities of transferring the house title? 14 Answers as of May 18, 2015

Me and my siblings names were added to the title of our Moms house after our Dad died. We assumed she would die before the house was sold. But now, she wants to sell the house because she is too old to live there by herself anymore. Are there any tax repercussions for her or for us if we deed the house back to her in the same way we were added to it? I would like her name to be the sole name on the deed because then she will receive all the profits from the sale and have no capital gains tax. But I am not sure if doing this would cause other issues.

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Goldsmith & Guymon
Goldsmith & Guymon | Dara Goldsmith
There are lots of issues, not just limited to tax issues. You and she should seek legal counsel before making any transfers.
Answer Applies to: Nevada
Replied: 5/18/2015
O'Keefe Legal Services, L.L.C.
O'Keefe Legal Services, L.L.C. | Sean P. O'Keefe
In Maryland, there can be gift tax and/or capital gain consequences in that situation, though they can likely be avoided or minimized. What the tax consequences will be depends on what you want to do and how you want to structure the transaction(s).
Answer Applies to: Maryland
Replied: 5/18/2015
James T. Weiner & Associates, P.C.
James T. Weiner & Associates, P.C. | James T. Weiner
Deed it back to her.. there should be no tax repercussions to undo the original gift to you
Answer Applies to: Michigan
Replied: 5/18/2015
Law Offices of Robert Beatson II | Robert Beatson II
Dear Sir/Madam, Yes. The facts need to be carefully reviewed and analyzed. An experienced tax attorney/accountant should be able to handle this. I have 30+ years of experience and further information about my tax/law
Answer Applies to: Maryland
Replied: 5/18/2015
Sebby Law Office
Sebby Law Office | Jayne Sebby
There are a number of tax consequences to either action for everyone whose name appears on the title. Contact a tax attorney or accountant with experience in real estate for specific advice.
Answer Applies to: Nebraska
Replied: 5/18/2015
    Wellerstein Law Group, P.C.
    Wellerstein Law Group, P.C. | Elisha Wellerstein
    If you owned the home for at least 24 months (2 years) during the last 5 years leading up to the date of sale (date of the closing), you meet the ownership requirement to qualify for the capital gains exclusion on a primary residence. Your mother would have to hold onto the house for 24 months once you deed it back to her for her not to have to pay capital gains Speak with an Elder Law attorney who can possibly help your mother get an aide to be with her if living alone is too hard.
    Answer Applies to: New York
    Replied: 5/18/2015
    Law Ofices of Edwin K. Niles | Edwin K. Niles
    1. With proper preparation, the Preliminary Change of Ownership Report will avoid a re-assessment. 2. If Mom sells during her lifetime she may have a capital gain; if you inherit the property you get a stepped-up basis to the value on the date of death.
    Answer Applies to: California
    Replied: 5/18/2015
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    Seek the services of a tax accountant to advise you.
    Answer Applies to: California
    Replied: 5/18/2015
    Law Offices of George H. Shers | George H. Shers
    You need to speak to a local tax attorney. ?Probably it could be considered a gift covered by the gift exclusion. ?It was unwise, from a tax stand point for your mother to make the original transfer. ?She needs to speak with a trust and estate attorney to figure out what is the best way to shelter her future assets.
    Answer Applies to: California
    Replied: 5/18/2015
    Attorney At Law | James G. Maguire
    There would be no tax consequences. You and you siblings would be making a donation to your mother. Since the house is her residence, there would be no tax consequences if she sells it.
    Answer Applies to: Louisiana
    Replied: 5/15/2015
    James Law Group
    James Law Group | Christine James
    There are likely tax consequences but no one can tell you for sure without knowing the basis when it was transferred, the sale price, etc. See an accountant.
    Answer Applies to: California
    Replied: 5/15/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    What you are considering sounds plausible and possible, but I would suggest that you discuss it in detail with an attorney or tax counselor.
    Answer Applies to: Michigan
    Replied: 5/15/2015
    Minor, Bandonis and Haggerty, P.C.
    Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
    You should run this question by your tax advisor, or your mother's. I'm not sure that she will qualify for exclusion of capital gain under Section 121, even if you do deed it back she has to have OWNED the house for the two years prior to the sale, and she has not. You and your siblings owned part. You could hold that you are reversing the gift transfer, and try to treat it as though it never happened. But I cannot say for sure that that will work.
    Answer Applies to: Oregon
    Replied: 5/15/2015
    Ashcraft & Ashcraft, Ltd.
    Ashcraft & Ashcraft, Ltd. | Randall C. Romei
    When you received title to the house you did not pay any consideration to your mother and there would have been no gift tax reporting. You could maintain the first transfer was for estate purposes and there was no completed gift since your mother remained in control of the house and continued to reside there. The transfer back is a reversal of the original transaction and similarly without tax consequence.
    Answer Applies to: Illinois
    Replied: 5/15/2015
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