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Thanks again for the info. I attach 41406 for you to read, but I am not sure it will help.

The Motley Fool Discussion Boards
Subject: Re: Taxable home sale?
Date: 11/1/2000 12:38:56 PM
Number: 41406
Author: JAFO31

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
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
I looked for Texas, each co-owner is permitted to occupy the property
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
life, especially ones covered by income tax exemptions on sale such as
your principal residence."


Regards, JAFO

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