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Tax implication of house in another state

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D

DJ37

Guest
In 1998 my mother and father-in-law deeded their house, located in Arkansas, to me with the provision that could continue to live there for their lifetime. My father-in-law is now deceased and my mother-in-law has moved into an assisted living facility. I presently own a home in Minnesota. The house in Arkansas has been sold for $70,000.

I need answers to the following questions:

1. Should my father-in law have filled a gift tax form when he transferred his home to me?
2. What are the tax implications for capital gains, estate taxes, etc?
3. If capital gains taxes are due what is the cost basis used to calculate them?

I would appreciate any advice you can give me.


 


L

lawrat

Guest
I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

You have a life estate, right? You only have possession for their lifetime. So when the last parent dies, you don't have a possessory or ownership right.

If however you mean they had a life estate, here are a few suggestions for the following questions:


1. gift tax form?
http://www.irs.gov/prod/forms_pubs/pubs/p95002.htm

2. tax implications for capital gains, estate taxes
http://www.irs.gov/prod/forms_pubs/pubs/p2251002.htm

3. cost basis read above articles and go to the main site:

http://www.irs.gov
 

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