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Avoiding Capital Gains

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SpiritRider2003

Junior Member
What is the name of your state? Illinois

Thank you for your time... I own a house which I "rent" to my sister. There has never been any formal agreement and she pays me what she can afford. She wants to buy the house and the bank suggested that we do a Quit Claim Deed and then my sister can take out a home equity line of credit to pay me for the house. My question is will I be responsible for capital gains on the money I receive? If so, is there any way to avoid the taxes? Thank you.
 


Kansas4me

Member
Depends on how much you sell the house for, how much you bought the house for, any claims against the house (such as insurance issues). If you bought it for 50,000 and sell it to your sister for 50,000 then no you have no capital gain.
 

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