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Bellerose63 Asked September 2020

How to transfer ownership of mother’s house with smallest amount of tax liability?

Geaton777 Sep 2020
You should also check what her state's Medicaid "look back" period is. In my state it's 5 years. You don't want to do anything that might negatively impact her ability to qualify if she needs it. Best to talk to an estate planner/elder law attorney who is familiar with this.

gladimhere Sep 2020
Transfer to who? Is it being sold at market value to pay for her care? Do not transfer to yourself as that will have an impact on her qualification for Medicaid. If that is the intent, see an elder law attorney first so you understand the ramifications of this action.

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FloridaDD Sep 2020
If your mom has less than 250,000 of appreciation, there will be no income tax.   Property taxes may increase, as many states change property tax on sale, give senior discount, etc.
Frebrowser Sep 2020
There is some serious fine print on that 250,000. The 250,000 in tax free federal capital gains only applies if the taxpayer has owned the property for five years and lived in it for two of the last five years.

https://www.nerdwallet.com/article/taxes/selling-home-capital-gains-tax

If Medicaid isn’t an issue, keep in mind that inheriting the home would give you a step up in basis.

For tax advice, see a tax specialist.

For Medicaid advice, see an elder law specialist.

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