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Living in home owned by parents

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K

KT2

Guest
What is the name of your state? New York
I am currently living in a home which my parents who have been in Fl. for 20 yrs still own. I would like to know if it would be advantageous for me tax wise, to have them transfer over title to me now or wait until I inherit. The home is owned free and clear.
 


R

roamer5

Guest
It depends upon the value of the house and the total value of your parents estate (including the house).

If they gift it to you now, your cost basis would be what they paid for the house 20 years ago and you could have a capital gains tax when you sell it. Also, they would need to file a Gift Tax Return (form 709) and could be subject to a gift tax.

If you inherit the house, then your cost basis would be the fair market value on the date your parents or remaining parent passes away. Your capital gains on a sale would most likely be a lot less.
 
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