Expert: Dick Dennis - 5/6/2009

Question
Hi. I am from Norfolk, Virginia. My father is going to transfer the deed of his home in my name but we are concerned that we may have to pay property taxes owed before the transfer. Is this true? Also, if I want to sell after the deed transfer will I have to pay the property taxes before selling or will the realtor deduct the owed property taxes from the sale? Please get back to me!

Answer
Before you do any property transfer of any kind, LaToya, I recommend you consult with a VA estate or real estate attorney to handle the transfer at the least amount of cost and concern with the IRS. The way you're doing it now, you may not only have to pay property taxes, but later on when you sell the property you are going to have your father's tax basis, thus causing you to pay more taxes at that time. You should also investigate transferring the property into a revocable family trust. It will cut down taxes later on. I do wish you well.

Dick Dennis