Tax when transferring property in NY

[enavigator]

What is the name of your state (only U.S. law)? NEW YORK

My question is about tax considerations when transferring property in New York State out of our family trust and into the names of four siblings. Is the property re-assessed by the county or state when the property is re-titled from the family trust to our names?

I am one of two co-trustees, and the only property in the trust is a house. It was an irrevocable trust that allowed my parent to remain in their house until they passed away, which was over two years ago. Since the transfer is between relatives, what is the tax handling in that case? What forms need to be filed?

I'm not sure if this is an estate tax question, a real estate question, or a tax forum question.

Thank you for your help.

 

[LdiJ]

What is the name of your state (only U.S. law)? NEW YORK

My question is about tax considerations when transferring property in New York State out of our family trust and into the names of four siblings. Is the property re-assessed by the county or state when the property is re-titled from the family trust to our names?

I am one of two co-trustees, and the only property in the trust is a house. It was an irrevocable trust that allowed my parent to remain in their house until they passed away, which was over two years ago. Since the transfer is between relatives, what is the tax handling in that case? What forms need to be filed?

I'm not sure if this is an estate tax question, a real estate question, or a tax forum question.

Thank you for your help.

It seems to me that you are talking about property tax...and that property tax would be the only tax consideration at this point. I do not practice in NY, therefore I know nothing about NY state law. However, I can tell you that in general a change in ownership does often cause a reassessment in property tax.

Is the property to be sold? If so, you might want to consult a local tax professional to determine whether it would be better for the trust to sell the property and distribute the proceeds to the beneficiaries, or whether it would be better for the trust to transfer ownership to the beneficiaries prior to a sale.

 

[enavigator]

Tax on transfer of property in NY State

Thank you for responding.

If we don’t sell now, and we re-title it to the four siblings, are there other taxes, aside from property taxes, that we must consider when it’s transferred out of the trust?

My other siblings don’t want to sell. The house is appraised at $400,000, although nothing is selling. And the entire estate, if you include the house, was about $800,000.

Your response is much appreciated.

 

[enavigator]

Tax impact selling from trust vs retitling to individuals before selling

Can anyone help on this question about Federal and/or NY state taxes? I've been searching online to determine whether it's better to sell the house from the trust, or to re-title the deed to the beneficiaries' names before we sell. I haven't found anything addressing whether it makes any difference, or regarding whether we need to do it before a certain date for any tax benefit?

Can anyone suggest where to research this question on our own?

Appreciate your help.

 

[davew128]

It is wholly irrelevant to the bottom line where you sell the property from, hence why you're not finding an answer.

 

[LdiJ]

It is wholly irrelevant to the bottom line where you sell the property from, hence why you're not finding an answer.

Dave, as I stated above, there could be a difference. A change in ownership often results in a reassessment of property tax.

I suggested that the OP consult a local tax professional. I am making that suggestion again.

Stop trying to find the information on the internet and consult a LOCAL tax professional.

 

[davew128]

Dave, as I stated above, there could be a difference. A change in ownership often results in a reassessment of property tax.

Please re-read post 4. OP was asking about Federal and NY State taxes on a SALE of the property. Property tax isn't part of the equation.

Can anyone help on this question about Federal and/or NY state taxes? I've been searching online to determine whether it's better to sell the house from the trust, or to re-title the deed to the beneficiaries' names before we sell.

 

[enavigator]

Realty transfer tax if retitled from trust to our names?

Thanks for the info on property tax, as well as tax on the sale.

I appreciate the suggestion to talk to a local tax accountant, but at this point any fees are coming out of my pocket until the house is sold. It’s possible that it may never be sold and I’ll be stuck with the bills, because the executor of the estate and the co-trustee of the trust are both uncooperative.

I also looked into the Realty Transfer Tax, and the instructions for Form TP-584 say “The conveyance of real property shall not include a conveyance pursuant to devise, bequest, or inheritance.” Can anyone verify that if the property is re-titled from the family trust to our names, it is considered a “conveyance pursuant to devise, bequest, or inheritance?”

Thanks for all your help.

 

[enavigator]

Another twist on Realty Transfer Tax

This question just occured to me.

If we didn't have to pay the Realty Transfer Tax when we re-title from the trust to our names, would it be taxable on a subsequent sale of the house after it’s titled in our names. I’m wondering if we’d be better off not re-titling before sale?

Any help is much appreciated.