Tax Law (Questions About Taxes)/Gift Warranty Deed

Advertisement


Question
My father passed away this year and left his house to my siblings and me using a gift warranty deed. We are going to sell the house to our nephew, which will also be this year.

Will we have to pay federal income tax on the proceeds? Should be approx 27,000 each. We live in Florida, so there is no state tax.

What actually is this money called if we do have to claim it?

Answer

Sorry for your loss

No income tax unless sale to nephew Is more than value of house when dad died

Did dad transfer house  at death or via gift while still alive?


You do have to report the sale at gross sale price to nephew

Your cost basis (and any gain) is either dad's historical price if he gave by gift while alive (yes, likely bad and taxable outcome) Or the date of death value if transferred at death (no gain and good Outcome)

Are you and your siblings providing financing to nephew?

Tax Law (Questions About Taxes)

All Answers


Answers by Expert:


Ask Experts

Volunteer


MEdusa

Expertise

Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

Experience

19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

Organizations
AICPA, CSCPA (Ct society), National Tax,

Publications
a bunch.

Education/Credentials
MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

©2016 About.com. All rights reserved.