Don Dwoske <ddwoske[at]yahoo.com> wrote
- quote -

It shouldn't.

- quote -

That may not be a problem. You buy it from your mother and
she is the one to give you the second mortgage. There will
be a minimum interest payment you will be required to make,
but that can be offset by your mother making gifts to you
that will in effect forgive some or all of your payments, up
to $11,000 per year.

If you're not living there you can also charge your mother
rent, and you will be able to depreciate the house. You'd
have to check with your financial advisor to determine if
that makes economic sense for you.

- quote -

You could do that, too.

Stu

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- quote -

I would want to own the house, but she would continue to
live there.. I do not live there.

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Stuart Bronstein wrote:

- quote -

I do not live at that property, does that make a difference?

- quote -

This sounds a bit better.

The other suggestion was to buy it at FMV.

I don't see how I can do that - I don't have the money, and
don't want, and likely wouldn't be approved for a second
mortgage in order to purchase the house. I am already
making mortgage payments on my own, seperate house.

I assume if this was possible, we'd put the money into an
account which belongs to my mother, then this money would be
part of her estate passed to me upon her death?

Thanks,

-Don

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- quote -

That would work. But if he is trying to get the house in
his name 100% now (for whatever reason) AND he wants a
current fmv basis, the only way I know to do that is to pay
her fmv now.

I'm unclear as to whether his phrase "take ownership" means
own it outright or merely share.

-HW "Skip" Weldon
Columbia, SC

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philmarti[at]aol.com (Phil Marti) wrote:
- quote -

Actually, that's a great idea. Much better than my thought
for joint tenancy, for this guy's purpose.

Stu

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Don Dwoske <ddwoske[at]yahoo.com> wrote:

- quote -

You could put the property into joint tenancy with you and
your mother. As long as it is clear that you didn't pay
anything for the purchase of the property, the entire value
will be included in her estate for estate tax purposes, thus
allowing a stepped up basis on the entire property when she
dies.

I don't know if that will qualify you to deduct mortgage
interest or property tax payments, though.

- quote -

The other way, generally considered the better way, is the
put the house into a trust with you as the trustee. But
that probably won't help you if you want to write off
mortgage interest and tax payments.

Stu

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Don Dwoske <ddwoske[at]yahoo.com> writes:

- quote -

Buy it for FMV.

- quote -

She may qualify as your dependent, and if she does, you
qualify for Head of Household filing status if you're
unmarried.

Phil Marti
Topeka, KS

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- quote -

Yes. This is very common. You need to talk to a lawyer who
has experience in this area.

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My mother has a home which she is going to leave to me at
her death.

Is there any way I can take ownership of the house before
her death, and still not have to pay Capital Gains Tax?
(meaning I get to use the current value of the house as the
basis)

We'd rather have the title/deed in my name sooner rather
than later, as I'm paying the real estate taxes, and many
bills for her already.

I read about in the UK about the "potentially exempt
transfers" PET where if the doner survives for seven years
after the gift there would be no CGT on the gift... but I do
not think such a think exists in the US.

At the moment, I can't find any way for her to transfer the house to me
in such a way that I have the current valuation as my basis
when reselling.

Thanks
Don

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