snakepuncess
Junior Member
What is the name of your state?Virginia
I own my childhood home of 75 acres. My parents have lifetime rights to the property, and my Dad has lived there for 30 years. He now wants to sell the property so he can move elsewhere.
My understanding of the tax situation is that I would owe the 28% Capital Gains tax on this property since I don't live there. The land is now worth about $250-300K.
If I deeded the property back to him, and he then sold it, would that satisfy the requirements for the tax relief? He hasn't "owned" it the last 2 years, but has owned lifetime rights to live there, and he has lived there. He would be tickled pink to be avoiding paying the $70K in taxes that will be owed otherwise. (Sorry, but he hates the IRS .)
Any insight? I haven't found enough info anywhere else to satisfy this question. Thanks muchly!
--Bonnie
I own my childhood home of 75 acres. My parents have lifetime rights to the property, and my Dad has lived there for 30 years. He now wants to sell the property so he can move elsewhere.
My understanding of the tax situation is that I would owe the 28% Capital Gains tax on this property since I don't live there. The land is now worth about $250-300K.
If I deeded the property back to him, and he then sold it, would that satisfy the requirements for the tax relief? He hasn't "owned" it the last 2 years, but has owned lifetime rights to live there, and he has lived there. He would be tickled pink to be avoiding paying the $70K in taxes that will be owed otherwise. (Sorry, but he hates the IRS .)
Any insight? I haven't found enough info anywhere else to satisfy this question. Thanks muchly!
--Bonnie