"Stuart A. Bronstein" <spamtrap[at]lexregia.com> wrote:
- quote -

Ya think?

- quote -

You know that and I know that but....

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote:
- quote -

Well, wife could go live in the place for the next two years
so that the shares of both sisters would be exempt up to
$250,000 each. But I'd guess that's impractical.

- quote -

But in this case it wouldn't be a gift. It would only look
like one.

Stu

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<bclee05[at]gmail.com> wrote:

- quote -

From the facts you state, the condo is owned 50/50 by the
sisters. Apparently your sister-in-law has lived in the
condo for at least 2 years. If so, she can benefit from the
exempted gain on HER HALF of the condo. So the max (if basis
was zero) that could be exempted by the sister is 200,000.
The actual gain basis for each half is likely different if
the parents paid a part, then the sister-in-law paid the
mortgage payments. I would advise you to get professional
help on this. What you pay him/her will keep you out of
trouble with the IRS.

Mike Lewis, CPA

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"bclee05[at]gmail.com" <bclee05[at]gmail.com> wrote:

- quote -

Sell for less

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It's cap gain.

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Your relative should stick to their day job and leave giving
tax advice to the professionals.

- quote -

Gifts are never income no matter how much.

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Yes. Your wife is taxed on her share of the profit.
Period. Who gifts what to whom doesn't change that.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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My wife's sister is selling her condo. Her parents helped
her buy the place and put the condo in her name and my wifes
name with the understanding that when she eventually sold
the place my wife would get half of the profit from sale of
the home.

The condo will probably sell for 400K w/ 100K left on the
mortgage. Thus my wife and her sister should each get 150K
each.

What is the best strategy to reduce tax liability here?

My understanding is that my wife's portion will be taxed as
regular income. Is there anyway to reduce it? One of my
relatives says we should roll it into some other property.

Another idea is for my wife's sister to hold on to the first
250K (my understanding is that the first 250K is tax free)
and then pay my wife 11K and me 11K each year until my
wifes' portion is paid out. One is allowed to receive 11K
in gifts tax free, yes? Could we include our son in the 11K
payments too? Is this overly complicated?

thanks,
bill

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