Sold my property Hi everyone,
I have a tax question on real estate. My husband and I have taken depreciation on my house for the past years (like ~17 or so) and have decided to sell it to my son last year. If it was sold at a $1 to him. What are the tax implications? Do I have to pay like ~$200k to the government because I took the depreciation benefit over the years? The house is only worth $500k in its value.
When we did the transaction, the lawyer said that we should sell at $1 and that there would be no taxes. And so, we did what he told us. But now everyone else is telling us that we need to pay the taxes. The lawyer screwed us over unfortunately.
We plan to still live at the house until the day we die and so, do we still need to pay the taxes? Is there a way to nullify the transaction? Does drafting a living estate help in anyway? Please share your thoughts. |