Asked by John Jones, Riverside, CA • Thu Dec 11, 2008
My wife and I are being gifted her fathers home. Today the two of them went to a document preparation company to get the deed changed so that my wife and I are 100% owners of the home. He will continue to live in the home and be responsible for the mortgage.
I've read that every year an individual can gift another individual up to $12k without taxes. There being two of us that means $24k. I've also read that capital gains tax is anything over $250k. What other taxes might I be missing? Additionally, we were told that since it was a father to daughter change that we'd dodge other tax bullets; can anyone clarify on the tax topic?
We live in Riverside California if that helps with your answers. I'd also appreciate if you'd provide an honest opinion on the following two questions:
#1. Should he pay us month to month and then we pay the mortgage that is in his name for record purposes?
#2. When he passes, mortgage in his name but the deed / title in ours; what then?
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