Brother and sister on Deed
Hello all,
If a brother and sister were deeded a home after the passing of their father, and the sister now wishes to buy out the brother (who has occupied the home for over 2 years), what is the process?
Both parties are amenable.
Is the brother exempt from paying tax on the buy-out since it's his primary residence?
This is in Massachusetts, if that matters.
Thanks for any comments!
Most Popular Reply
Rick Harmon Not true. The starting value is not zero. The house has to be valued while its in the estate. This is for both state and federal taxes. In Colorado inheritance tax is starts at 6%. ( I don't know about Massachusetts ) Capitol gains is based on your tax bracket but starts around 25% (I believe). Many people make the mistake of under valuing the property in the estate to avoid inheritance tax only to end up paying more Capitol gains as they started with a lower beginning value and the Capitol gains tax is higher. No legal or tax advice intended. RR