Home Buying in 92407>Question Details

Mlb, Home Buyer in Fort Myers, FL

The probate on my father's estate ends next month. His will states that his assets are to be sold and the

Asked by Mlb, Fort Myers, FL Sun Aug 2, 2009

money divided between my brother and myself. Do we have to sell the house right away or can we wait for the housing crisis to end?

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No need to spend money for an attorney. The house will be deeded from the estate to yours and your brother's name. Both of you have full right to use it and dispose it, as you wish. When the probate ends next month, please have an active broker specializing in listing properties give you a written opinion of the value. This is your tax basis, as the asset is passed to you tax free. When the market comes back, whatever value increase from the recording date of the deed to you and your brother will be considered long term capital gain if you keep the house for over 365 days. The current federal tax rate is 15%. When the Bush passed tax law sunsets in 2010, we expect the current Administration to let it increase back to 20% and there is already talk in the Democratic Congress to raise it to 25%.
Then, you have to question yourself, if by waiting is worthwhile - you have to ask when the market will increase 10% to make the wait worthwhile with the tax increase. Or should you sell now to raise TAX FREE capital to acquire under market properties. Rent it for the cash flow and tax write-off and then sell it or exchange it when it is time.
0 votes Thank Flag Link Tue Aug 11, 2009
Hi Mlb
Talk to a real estate attorney.

Jes Sierra, B.Sc., Realtor®

0 votes Thank Flag Link Fri Aug 7, 2009
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