Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123541  
Subject: Re: Taxable home sale? Date: 11/1/2000 12:38 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
HatchetJack: "While title changes of realty are generally completed gifts, if the donor retains a life estate by continuing to occupy the property rent-free for example, the full value would be taxed as of the date of death."

Assuming that the donor retains an interest in the property, the donor may not need to keep a life estate in order to be allowed to occupy the property (or to avoid paying rent to the other co-owners). The last time I looked for Texas, each co-owner is permitted to occupy the property (but not exclude the other co-owners) and need not pay any rent or otherwise account for any implied rent because co-ownership carries with it the right to occupy the property. All of my discussion presumes that the co-owners do not have some kind of agreement among owners.

"Keep in mind the general fallacy of gifting low basis property in later life, especially ones covered by income tax exemptions on sale such as your principal residence."


Regards, JAFO
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.