Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-12-2015, 10:16 PM
Junior Member
 
Join Date: Apr 2015
Posts: 1
Deeds, Capital Gains... Etc..

Hello, My wife inherited a house from her grandmother, which was put into a trust,many years ago before we were married.

We never had/got around to putting my name on the deed.

We are now looking to sell the house (we're in California, if that changes anything) and due to the situation with the deed we have been asked to sign a Interspousal Grant Deed. We are concerned, that since she will be selling the property "on her own" it will affect the capital gains tax if she profits over $250K...

However, we're not sure if that would apply if we are married and file jointly. Obviously this is all very new to us, so any insight on this situation would be appreciated! Thank you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-13-2015, 10:39 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
We are now looking to sell the house (we're in California, if that changes anything) and due to the situation with the deed we have been asked to sign a Interspousal Grant Deed.=====>>I guess this is legal issue so you need some accurate professional legal help. So, The grant Deed is used to create/ transfer a real property ownership interest between spouses. Your spouse simply may need a Quit Claim Deed transferring interest from herself to both of you.


We are concerned, that since she will be selling the property "on her own" it will affect the capital gains tax if she profits over $250K... ==>>so, the interspousal transfer grant deed, likely granted sole ownership of the house to your
spouse if you sign it and then I guess yes;she
can exclude up to $250k in profit from the sale of a main home or $500k for a married couple as mfj as you know as long as your spouse has owned the home and lived in the home for a minimum of 2 years.i mean In the 5 years prior to the sale of the house, she needs to have lived in the house for at least 24 months in that 5-year period.


However, we're not sure if that would apply if we are married and file jointly. Obviously this is all very new to us, so any insight on this situation would be appreciated======>>>>>in my opinion, you need to check it with your legal Advisor/ real estate attorney;I can tell you; You need to investigate the laws on selling in CA your home state. As for the deed, there is no law that states you must be on the deed. a spouse does not automatically have to be on a deed;some state laws give rights to the spouses of homeowners, even when the non-owner's name is not on the title.aslongas both of you own the home/ real property as joint tenants, you will not receive most favorable capital gains treatment.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Capital Gains. I think. Joshua Capital Gains 1 02-21-2015 01:32 AM
capital gains/divorce yellowjacket8 Capital Gains 1 02-26-2014 01:11 AM
What is the treatment for Capital Gains and Capital Losses in a C-Corporation? katlee C-Corporation 1 02-01-2009 05:23 PM
Capital Gains kmk21248 Capital Gains 2 05-01-2008 02:50 PM
Reinvested capital gains tlagugu Capital Gains 1 03-22-2008 11:17 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.