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Subject:  Re: Tax on sale of Grandma's home Date:  1/8/2002  11:56 PM
Author:  acm4tax Number:  56950 of 127747

This isn't my primary residence, but it's also not an investment property.

Oh but it is investment property. That's why Phil told you the property will be treated as a long term capital gain.

I have a question however, is the mortgage from a bank, or a personal mortgage between your grandmother and you? If this is a personal mortgage, is it recorded? In NY, if this is a personal mortgage, do yu actually have title to your grandmothers house, or will title pass when the contract to your grandmother is paid off? Does she have a will that states you will inherit the house and any unpaid mortgage debt will be forgiven? There may be a stepped up basis possibility if my thought is fact and your grandmother passes before the personal contract is paid off.

There may be a lot more to your question than you stated in your post.

Please give us more information about that mortgage.
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