Taxes
me and my brother inherited my parents house it's paid for and he wants to live in it so my half will be financed to me do I have to pay taxes on my half
Your question isn't very clear but I am guessing you mean Your brother will be paying you for your half.
When you inherit a property, the basis is the value when you receive it. So if you sell your half at market price to your brother then there is no capital gain (profit) to be taxed. If you financing it over time then the interest you receive would likely be taxable but the amount of the payment applied to the principal would not be taxable.
That said I am not an accountant. You should contact a competent accountant to discuss how to structure this to maximize the benefit to you while minimizing the taxes.
thank you yes I'm getting the value at that time he will get a loan and pay me just was wondering what the money I received is taxed or can I just invest it myself somewhere
Hi, sorry about your folks. I think your best advice is to talk to the lawyer settling the estate to get clarity on your specific situation. @Ned Carey is right about the house value being the value when you receive it. To be more specific the market value at the date of death of the last owner (mom or dad)- vs. the sales price is what you would pay capital gains tax on. For example if you sell at 50 and it was worth 40 when you inherited you pay capital gains on your half of the 10 thousand (minus expenses). A lawyer and an accountant would be helpful. If you sell it to your brother if that is what you are doing the date that sale occurs doesn't matter as far as the values. Getting an appraisal is a good idea if what you have in mind is a sale even if it is to a sibling, make sure the appraisal is based on the value when you inherited. This helps should questions come up later and the appraiser should have no problem doing it this way.
thank you again yes all is done deed changed in his name he's got insurance basically worth 300 thousand so agreed is 150 for me just wondering when I get it do I pay taxes its inherited in a revokeable trust no probate or lawyers involved I believe I don't have too but who knows I want to invest my share
We did not have a revocable trust so you need to look into what impact that has. Again get the appraisal for sure. Putting aside any capital gains tax issues I will tell you we went through this and regret skipping a contract of sale with my brother. The cost to the relationship with my brothers and sisters was high. I hope you have a sales contract setting out the terms, in particular how long to get a mortgage to buy your share. In the end it worked out for us but it was a long road.
You will need an accountant as an investor so maybe use this current concern to help you find a good one.
well yes we have a trust and the house is included he gets the deed transrfered from the trust to his name we done that so now he has rites to get a line of credit on the house which he will pay me my half bottom line question is do I have to pay taxes