Sale of Mom's house..questions...

craftycFebruary 24, 2009

We are selling mom's house and are getting ready to contact an Elder Law attorney with questions about taxes/proceeds etc. The house is now in my brother's and my names....

Does anyone have any ideas of the questions we should be asking...we have tried to think of all we can, but if anyone has any experience with this, could you please give me some more suggestions? (House is in Pa. ...we are currently in Florida...attorney is in Pa. ..this gets complicated!) thank you for ANY suggestions you might have!!

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sushipup1

If the house is in your names, I don't see why it would affect your Mother's taxes or the proceeds, which will all be yours. You may trigger a taxable event which will require you to pay taxes in PA, but that's a tax question, not an elder-law question.

When we moved Mother from AZ to CA, we had to file partial-year tax returns in both states. As for her medical coverage, Florida has a Dept of Elder Affairs, and you should be able to ask a lot of questions there. I work for a similar agency locally that helps clients evaluate insurance plans, etc, all free as a non-profit.

Here is a link that might be useful: FL Dept of Elder Affairs

    Bookmark   February 24, 2009 at 9:42AM
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agnespuffin

Yes, the house is YOURS. Unless there was money involved, it was a gift. You need to check with the tax officials, since there may be some tax due according the value of the gift. If she has saved any paper work pertaining to cost of improvements, (new roof, new heating system, additions, etc) you need to have those. It changes the paper value of the gift.

The value of the house when she gave it to you is also important, as it will determine what kind of tax bite you might have when and if YOU sell it.

If you have a regular tax accountant, check with him.

    Bookmark   February 25, 2009 at 7:26PM
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candler

I'd think any attorney worth his salt should be able to advise you. I've heard when one inherits property their basis becomes whatever the property was worth when the parent died. If it was rental property the circumstances might change.

    Bookmark   May 15, 2009 at 5:44PM
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jkom51

Surprised to see this old thread resurrected. However, candler's post is not quite accurate: "I've heard when one inherits property their basis becomes whatever the property was worth when the parent died. "

It depends on how the property was titled prior to death. Property held in Joint Tenancy - a huge, huge mistake - only gets the step-up basis on whatever percentage of the property the deceased owned. Property held by spouses as community property will get a full step-up in the tax basis upon the death of the first spouse.

Attorneys are generally not specialists in inheritance tax issues. The proper experts to consult, as agnespuffin posted, is a tax advisor.

    Bookmark   May 16, 2009 at 4:27PM
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