Facts:
The father has a life estate in the home he has lived in for many years. The client said it was at 22% {whatever that means}.
Father went to nursing home and will not return to his home.
Father's net worth is about 600,000 and falling fast with nursing home bills.
Issue:
Son wants to quit claim deed home to one of the syblings and then rent out the house.
Insurance company is concerned over a home that is not lived in.
Tax Question:
Does this cause capital gains and or gift tax return filing requirements if the kids would sell the house?
What about if the kids turned it into a rental because it may be a soft market to sell a home in?
What would be the best way to handle this situation?
Mahalo,
Bjorn
The father has a life estate in the home he has lived in for many years. The client said it was at 22% {whatever that means}.
Father went to nursing home and will not return to his home.
Father's net worth is about 600,000 and falling fast with nursing home bills.
Issue:
Son wants to quit claim deed home to one of the syblings and then rent out the house.
Insurance company is concerned over a home that is not lived in.
Tax Question:
Does this cause capital gains and or gift tax return filing requirements if the kids would sell the house?
What about if the kids turned it into a rental because it may be a soft market to sell a home in?
What would be the best way to handle this situation?
Mahalo,
Bjorn
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