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Old 01-09-2017, 09:49 PM
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Join Date: Jan 2017
Location: Central North Carolina
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Income from sale of a relative's home...

Hello,

I (as well as my 3 other siblings) received the proceeds from the sale of my Father's house early last year-2016. Each of us received 25% of the total from the sale of the house. We were paid in monthly installments (each of us received $315.00) for 5 years and then were paid a larger "balloon payment" (approx $39,000) at the end of 2015.

Would this be considered a long term capital gain? What would my capital gains tax rate be given that I file a single and have an annual income of only $28,000?

The total of what I received was approx between $68,000 to 70,000...



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Old 01-10-2017, 10:43 AM
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Join Date: Oct 2010
Posts: 4,450
Would this be considered a long term capital gain? ====>>No it is a gift; Gifts you receive aren?t considered income. It doesn?t matter how large they are. You don?t report them on your income tax return in any way.

What would my capital gains tax rate be given that I file a single and have an annual income of only $28,000?=====>>no tax on the gifts for you; but If you receive a gift in the form of income-producing property, you must report any income produced after the gift. For example, if you receive stock as a gift, you must report any dividends paid on that stock after the gift.



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