AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question My mother and I own our home as JTWROS. I have a 75% share of the basis (including improvements) and my mother has 25%. The home has appreciated in value above the adjusted cost basis. I would like to buy out my mother's share and be the sole owner. Should I have the house professionally appraised to determine it's value, or can I use the Florida property tax appraisal? Also, can my mother apply $250,000 capital gains exclusion to her sales proceeds? When I finally sell the house, can I also use the $250,000 capital gains tax exclusion? Thank you.
Answer Elizabeth,
Thanks for your question.
The property tax appraisal is not valid for this purpose. However, you don't need to spend the money for an appraisal. If you can get a Realtor to give you an estimate, that would be sufficient.
Since the sale is to a related party, she cannot exclude the gain. When you sell, you may exclude up to $250,000 if you have owned and lived in it for 24 of the prior 60 months as you principal residence.
