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Roy,

Good timing. I was just checking the messages.

One question about the post.

You wrote:
<< And, since it is a gift, mom would have to retain grandma's basis in the property and may have a very large gain to pay when it is sold.>>

Are you saying that when my mom decides to sell the house (say 10 yrs from now), she would be required to pay a capital gains tax on the entire price of the house since she rec'd it for a gift? Or would she and/or grandmom have to pay the gain tax at the time of the sell from my grandmom to my mother (essentially today if the house is sold to my mom)?

Excuse my ignorance, but what do you mean by "retain grandma's basis in the property"? If my grandmother does sell the house to my mom, how would this impact my mother's ability to take out a mortgage on the house and thus, pay off her credit card debt. Would my grandmother still have to be a part of the mortgage process?

Thanks so much for your help.

Ed

P.S. I thought the days of capital gains on houses were gone. Or am I confusing the issue.
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