Old Bridge, NJ · Member since 2013 · 80 posts · 11 votes
My dad owns a vacant lot in Pennsylvania he doesn't want anymore and asked my brother and I if we wanted it. I'm posting here to find out the easiest way to transfer the property from my father to my brother and I.
is it as easy as us going to the township and sign some paperwork?
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
The reason I ask about the value. If you aren’t building until after he passes, you get the value at his passing as your basis. If you are “given” the A) counts against his lifetime giving limit (probably doesn’t matter unless insanely rich) but B) you inherit his cost basis, you will owe all the taxes on the value increase since he purchased. Taxes you wouldn’t owe if you waited.
Heck, partner with your dad where he gets a certain percent of the home for contributing the land. You and your brother put as much in to the deal as the land is worth and you 3 are equal partners. Then he can leave you 2 brothers his share later, tax free.
Ps. Not a tax guy, not a cpa, or even an accountant. I just ran in to similar problems trying to buy some land form my FIL.
Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
4y
Hi @Joe Capobianco, a quit claim deed would probably be the easiest way. You do not need a realtor or a lawyer but if you want to hire a lawyer, you can.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
We’re assuming it hasn’t gone up much in value since purchased right? Otherwise you’re adding a lot of tax to what would later be tax free. Are you planning to build something?
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
4y
@Joe Capobianco a quit claim deed. I think in PA you can have a lawyer file it with the county. You would inherit this at the stepped up basis on his death so if it has increased in value since purchase you might want to look at other ways to handle the transfer. You also want to look at federal gift tax vs the value.
Hi @Joe Capobianco, a quit claim deed would probably be the easiest way. You do not need a realtor or a lawyer but if you want to hire a lawyer, you can.
We’re assuming it hasn’t gone up much in value since purchased right? Otherwise you’re adding a lot of tax to what would later be tax free. Are you planning to build something?
he purchased this about 10 years ago and it's been paid off since then. my brother and I do plan to eventually build on it but not in the near future. Not sure of its value right now but assume it did increase since he bought it
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
The reason I ask about the value. If you aren’t building until after he passes, you get the value at his passing as your basis. If you are “given” the A) counts against his lifetime giving limit (probably doesn’t matter unless insanely rich) but B) you inherit his cost basis, you will owe all the taxes on the value increase since he purchased. Taxes you wouldn’t owe if you waited.
Heck, partner with your dad where he gets a certain percent of the home for contributing the land. You and your brother put as much in to the deal as the land is worth and you 3 are equal partners. Then he can leave you 2 brothers his share later, tax free.
Ps. Not a tax guy, not a cpa, or even an accountant. I just ran in to similar problems trying to buy some land form my FIL.
@Joe Capobianco a quit claim deed. I think in PA you can have a lawyer file it with the county. You would inherit this at the stepped up basis on his death so if it has increased in value since purchase you might want to look at other ways to handle the transfer. You also want to look at federal gift tax vs the value.
thank you colleen! ill look into gift tax and the value. im sure the lot increased in value over the last 10 years