home sale capital gains related question

[strohlde]

What is the name of your state? My wife and I live in Colorado but the home and my mother-in-law live in Ohio

My father-in-law died about 3 years ago now and my mother-in-law moved out of their house a bit over a year and a half ago. The title is solely in her name. My wife and I are thinking about remodeling the home and selling it so that we can actually get some money out of it. What is the best way to go about it. If we have our names added to the deed and sell it how will that work with capital gains? Does the $250k limit go out the window? Should we just keep it in her name and have her gift the profit to us? She owns the home free and clear and we've already agreed upon the amount she will get, the rest comes back to us. As it's in the burbs of Cincinnati it's not worth a whole lot, in its current state maybe about $60k and we're looking to sell for $120k after remodeling (the house was a mess).

Any suggestions or advice on how to minimize tax liability for all parties is greatly appreciated.

[LdiJ]

Originally Posted by strohlde

What is the name of your state? My wife and I live in Colorado but the home and my mother-in-law live in Ohio

My father-in-law died about 3 years ago now and my mother-in-law moved out of their house a bit over a year and a half ago. The title is solely in her name. My wife and I are thinking about remodeling the home and selling it so that we can actually get some money out of it. What is the best way to go about it. If we have our names added to the deed and sell it how will that work with capital gains? Does the $250k limit go out the window? Should we just keep it in her name and have her gift the profit to us? She owns the home free and clear and we've already agreed upon the amount she will get, the rest comes back to us. As it's in the burbs of Cincinnati it's not worth a whole lot, in its current state maybe about $60k and we're looking to sell for $120k after remodeling (the house was a mess).

Any suggestions or advice on how to minimize tax liability for all parties is greatly appreciated.

Leave it in her name. Let her be the one to sell the home. Let her gift you with the amount that is to go to you.