gifted house

[Ben Maquinaqlez]

What is the name of your state? California

My mother in law gifted her house to my wife, it is entirely in our name, we are now trying to move to Texas and are planning on selling the house, she bought it in 1963 for $12,000.00, it is now worth about $500,000.00. Will i have to pay capital gain on the difference??? what is my solution??

Originally Posted by Ben Maquinaqlez

What is the name of your state? California

My mother in law gifted her house to my wife, it is entirely in our name, we are now trying to move to Texas and are planning on selling the house, she bought it in 1963 for $12,000.00, it is now worth about $500,000.00. Will i have to pay capital gain on the difference??? what is my solution??

Post this in the tax forum and tell them we sent you over so they do not give you any nastygrams for double posting.

[nextwife]

Are you buying another place with the gains? Are you both in title and is it your PRIMARY residence??

[url]http://www.taxguru.org/re/primary.htm[/url]

"As of May 7, 1997, the rules for sales of primary residences were changed dramatically. However, many people, including some tax and real estate professionals, are unaware of the changes.
The long-lived rules requiring reinvestment of sales proceeds were completely repealed. Likewise, the once in a lifetime exclusion for sellers 55 & over was also eliminated.
In their place was instituted a new law allowing up to $250,000 of profit from the sale of a primary personal residence per person ($500,000 per couple) to be excluded from taxation. The full amount is available if the seller(s) used the home as their primary residence for at least two (2) years out of the five (5) years prior to the sale."

[HomeGuru]

Good site from my cousin taxguru.

[nextwife]

I thought you might like hearing from the kinfolk.

[HomeGuru]

Originally Posted by nextwife

I thought you might like hearing from the kinfolk.

**A: yes, I don't get to talk much to him ever since the last 1040 block party.