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Oregon Uniform Transfer To Minors Act

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quarkcharm

Junior Member
Hello experts! I have a question that I hope someone can help me with: my wife and I just sold our house (we expect to close end on Nov.). We hold title as custodians for our daughter under the UTMA. Our daughter is now 24, and we've owned the house for 7 years. Does our daughter have to pay tax on the capital gain, which is about 35K? Will the IRS be aware of the sale? What should she/we do? I appreciate all input! Thanks, Quarkcharm
 


anteater

Senior Member
You mean that your daughter sold her house, right?

I guess that if the daughter owned it and it was her primary residence for 2 out of the last 5 years, then she would qualify for the $250,000 exclusion.
 

quarkcharm

Junior Member
I guess that's right...would it have been hers anyway once she turned 21? I'm clueless about these things. But, the title company is going to put the funds in my bank account I believe...
 

quarkcharm

Junior Member
Right, it's her inheritance. Her granddad lent us the money to buy the house and we were named custodians, and before our daughter turned 21 he died. I'm just worried she'll get nailed for taxes on the whole amount...it cost 375K and is selling for 405K. Is there a gift tax involved do you think? She lived at home until last year and this year is the first time she's filing income tax returns because previously she was a full-time student and I claimed her on my taxes as an exemption, plus she never made any money. Thank you for your advice!
 

Kiawah

Senior Member
I suspect the 'gift' occurred when granddad provided the money for the purchase, and should have been reported as a gift on his tax form. I also suspect if you've been paying property taxes, those should have been reported as gifts as well (if exceed annual gift tax exclusion, when added to other gifts you may have given her).
 
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