Originally Posted by DaisyMaeO
I sold a property which my parents intended as an inheritance for myself and siblings. The property was in my name only....would there be a penalty or incurred tax on me if I pay off my sister's mortgage directly for her as her share?
I sold a property which my parents intended as an inheritance for myself and siblings. The property was in my name only....========>> The new deed should include your name and address, the name and address of the decedent, the address or location of the property, or etc. Since you co-inherit the property with your sister, the name of the co-owner should also be included on the new deed. County recorder's offices in some states claim you can write the new deed without the aid of an attorney. If part of that inheritance is the family home / other real estate, the best way to divide the asset is to sell it and split up the cash. But selling inheritance property presents special logistical, practical and emotional challenges. Having a plan and enlisting professional help will allow the best outcome for everyone involved.
would there be a penalty or incurred tax on me if I pay off my sister's mortgage directly for her as her share?=======>> you need to obtain a quitclaim deed and fill out the form. Requirements vary by state, but generally you must provide identification and contact information for both your sibling as seller and yourself as buyer. Your SISTER must report the sale of a home unless it was her primary residence and your sister did not realize any gain over the $250K exclusion for single and head of household filers or the $500K exclusion amount for married filers. In most cases, the sale of an inherited home is a reportable event, even if your sisiterr does not have to pay taxes on the sale. This can be a complicated matter, and your sister must report completely accurate information.you need to get some professional help from an Enrooled Agent/a CPA doin g taxes in your local area