My wife, a U.S. citizen, owns a rental townhome in Florida which she would like to sell (property is currently in her name). She has (2) options to sell it :
1) Sell it with herself as the owner and add the capital gains to our joint return, OR
2) Quitclaim the property to her mother, a Peruvian citizen, and have her mother sell the property.
Which option is preferable from a tax standpoint to her family as a whole ? She is aware that any sale of real property by a foreign person is subject to a 10% withholding by FIRPTA law. Also, she and her family would be willing to pay any additional tax liability to me if Option #1 is preferred.
Any advice appreciated as they stand to make about $100K on the sale.
Also, she has owned the property since January 2005.What is the name of your state?
1) Sell it with herself as the owner and add the capital gains to our joint return, OR
2) Quitclaim the property to her mother, a Peruvian citizen, and have her mother sell the property.
Which option is preferable from a tax standpoint to her family as a whole ? She is aware that any sale of real property by a foreign person is subject to a 10% withholding by FIRPTA law. Also, she and her family would be willing to pay any additional tax liability to me if Option #1 is preferred.
Any advice appreciated as they stand to make about $100K on the sale.
Also, she has owned the property since January 2005.What is the name of your state?