What is the name of your state (only U.S. law)? TX
My husband inherited a home from his father in 1994. He paid the mortgage for a number of years and allowed younger brothers and sisters as well as his mother to live in the house with him. When we got engaged in 2009, he made arrangements to sell the house to his brother.
The problem is that he received only $110,000 from his brother, and the escrow company gave him a 1099-S with 300,000 on line 2. The company told him that since houses were going for $250-300K in that neighborhood, he would have to list the remainder as a "gift" which is all spelled out in the closing statement.
There are misc smaller fees, but the main numbers are "total consideration" of $300,000, gift equity transfer of $135,000, loan payoff of $53,000, and balance due of $110,000 (the amount of the check he actually received.
He has been laid off since last September and it wasn't a good year at work. He made $17,000 last year, and I made $6,000. We really can't afford extra taxes on money he never really received, and I could really use some help and guidance of what needs to be done, if anything can be?
Oh, we were married in August of 2009. He lived in the house since his father's death, did not collect rent from his brothers and sisters or mother, and moved out when he transferred it to his brother in April 2009. I never lived there (since he moved out before we were married).
More details:
Father passed away in 1994.
House is located in California
Loan balance at that time was about $75,000
Value of home was also around $75,000
My husband took over that loan (refinance), transferred the deed solely into his name, and took out an additional loan of $40,000 in order to build an addition onto the house so the entire family (his brother and sisters as well as mother) could all live there.
So his total indebtedness on the house was about $115,000
He paid on it until March/April 2009, then sold it to his brother
His brother took out a loan of about $160,000, paying off the rest of the loans ($53,000) and giving my husband $110,000
So his real "proceeds" from the house was about $48,000 considering the loan was paid off as well? I'm not exactly sure how to consider everything.
I don't have any idea how to handle it on taxes either. It was his primary residence, he didn't own any other property. He used part of the money to live on while laid off, put $43,000 into buying a house (paid off) in February 2010.
Please, please, any advice is appreciated. I've just filed simple forms for the past few years, since I lost my business, and I'm not up on all the tax laws, as well as I never had a capital gains to file. Thank you to anyone who can help!!!What is the name of your state (only U.S. law)?
My husband inherited a home from his father in 1994. He paid the mortgage for a number of years and allowed younger brothers and sisters as well as his mother to live in the house with him. When we got engaged in 2009, he made arrangements to sell the house to his brother.
The problem is that he received only $110,000 from his brother, and the escrow company gave him a 1099-S with 300,000 on line 2. The company told him that since houses were going for $250-300K in that neighborhood, he would have to list the remainder as a "gift" which is all spelled out in the closing statement.
There are misc smaller fees, but the main numbers are "total consideration" of $300,000, gift equity transfer of $135,000, loan payoff of $53,000, and balance due of $110,000 (the amount of the check he actually received.
He has been laid off since last September and it wasn't a good year at work. He made $17,000 last year, and I made $6,000. We really can't afford extra taxes on money he never really received, and I could really use some help and guidance of what needs to be done, if anything can be?
Oh, we were married in August of 2009. He lived in the house since his father's death, did not collect rent from his brothers and sisters or mother, and moved out when he transferred it to his brother in April 2009. I never lived there (since he moved out before we were married).
More details:
Father passed away in 1994.
House is located in California
Loan balance at that time was about $75,000
Value of home was also around $75,000
My husband took over that loan (refinance), transferred the deed solely into his name, and took out an additional loan of $40,000 in order to build an addition onto the house so the entire family (his brother and sisters as well as mother) could all live there.
So his total indebtedness on the house was about $115,000
He paid on it until March/April 2009, then sold it to his brother
His brother took out a loan of about $160,000, paying off the rest of the loans ($53,000) and giving my husband $110,000
So his real "proceeds" from the house was about $48,000 considering the loan was paid off as well? I'm not exactly sure how to consider everything.
I don't have any idea how to handle it on taxes either. It was his primary residence, he didn't own any other property. He used part of the money to live on while laid off, put $43,000 into buying a house (paid off) in February 2010.
Please, please, any advice is appreciated. I've just filed simple forms for the past few years, since I lost my business, and I'm not up on all the tax laws, as well as I never had a capital gains to file. Thank you to anyone who can help!!!What is the name of your state (only U.S. law)?
