We put moms house in my sisters and my name 12 years ago. Moms divorced and living with me as shes unable to live alone safely anymore. My daughter and son in law are currently living in the house so its not vacant. Wondering about difference if any of selling the house now or waiting until she passes.
Beyond that, I think your family who are renters will be entitled to written notice, and any purchase agreement would have to address their status to ensure that they have proper notice to vacate if the house is sold.
But even more beyond that, and more importantly, is the issue of whether your mother may ever need Medicaid assistance. And that also includes the issue of any possible deterioration of her condition.
What do you plan to do with proceeds from the sale?
But @ 12 it's past an issue.
The ? then becomes, when & if the property is sold do you want all or some or none of the proceeds of the sale to go towards moms care costs?
Out of curiosity, what value is the tax assessor showing for the property both for land & improvements (the house)?
There will, however, be capital gains tax. Someone will need to determine the "basis" in the property, which may be the amount originally paid plus any improvements over the years. A tax professional may be able to find something in the tax code that allows the basis to be the market value on the date of the transfer from mom to you. The capital gain will be the net sale proceeds minus this basis. If mom bought the house many years ago, this can be a significant figure. You may want to talk to an attorney or a tax professional before you sell to avoid a surprise come tax time.
"We had an attorney do the paperwork of the title transfer. The only reason I'd like to sell the house now is to get out from under prop taxes and such as well as the hassle of upkeep on 2 houses. Yes medicaid could be a possibility in the future"
And going back to your original question - a couple of other considerations. Did you and sister register the deed with the county? I ask because sometimes people leave parent on deed to keep the additional homestead and elderly property tax exemptions. If you did not register the deed and your mother is still listed on the deed, and you received a property tax benefit for the last 12 years, when you do go to sell it, the title company will need to follow the deed transfer path to make sure that the seller holds proper title to transfer to seller. If the market is strong where you are, and the relatives can find somewhere else to live quickly if it sells quickly, it could make sense to sell it now. If you are trying to sell it to a family member, please remember that if you sell it below market cost, that the IRS could could come after you and your sister as gifting part of the reduced cost of the house. Since you and your sister do not live in the home as a primary residence and your mother gave up ownership all those years ago, you will not have exemptions from IRS taxes on capital gains as noted above for you and your sister. Please engage the services of both a good elder lawyer and tax preparer so that you can best dispose of this asset without your mother, you and your sister getting hit with unexpected expenses. Rather complicated and hopefully your legal person can help get your ducks in a row.
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