California:
Purchased a home 10 years ago that I lived in for five years. One the fifth year I moved out and rented the home to my mother in law. For five years she lived in the house and was a 'renter'. Last year in July she was able to take ownership of the house and the deed and assummed the loan.
There was no money exchanged, just the assumption, but I do have six months of rental income from the property.
Does anyone have experience with the tax implications of giving property to a famly member that has been a 'renter' and assummed the loan. Turbo Tax is not quite revealing the answer on this one yet.
-thanks
Purchased a home 10 years ago that I lived in for five years. One the fifth year I moved out and rented the home to my mother in law. For five years she lived in the house and was a 'renter'. Last year in July she was able to take ownership of the house and the deed and assummed the loan.
There was no money exchanged, just the assumption, but I do have six months of rental income from the property.
Does anyone have experience with the tax implications of giving property to a famly member that has been a 'renter' and assummed the loan. Turbo Tax is not quite revealing the answer on this one yet.
-thanks