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Best way for my mom to gift me her condo w/o capital gains tax
My mom bought a condo for 150,000 over 10 years ago. Probably worth 190 today. She has rented it out for several years and now wants to give it to me. Shes figuring she will have to pay about 30,000 in capital gains tax. Is there a way around this or a way to reduce it. would putting my name on the deed while i live there for a couple years change anything? or maybe selling it to me for a very low amount and her holding the note? We need advise on what would be the best way....
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- Tax Strategist| National Tax Educator| Accepting New Clients
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Michael is right.
There is no reason to gift over numerous years.
The gift tax exemption is MILLIONS. The $14,000 numbers is just a FILING requirement. So yes, a gift tax return will need to be filed...but unless she's gifted you 100 other condos...no tax will be owed.
Gifted property just continues on the carryover basis from the original owner.
So your basis will show the original $150k and the X amount of accumulated deprecation and you'll have about 17.5 years left of depreciation.
There is no fancy footwork needed here.
