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Inherited 1/2 of house arrgh!
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amdx
Jul 19, 2015, 5:50:04 PM7/19/15
to
Mom died 3 years ago, left house to sis and I, sis moved into the house.
Early on she talked about getting a mortgage to buy out my half, but
she didn't qualify. She's working part time and I question whether she
has any interest in working more. I haven't received any money for my
share. Home value is approx. $45k
Am I creating a tax problem for myself with such a situation.
Mikek
PS. I'm not happy with this, I thought I'd get some money, but sis has
nothing, a least now she's not homeless.
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Early on she talked about getting a mortgage to buy out my half, but
she didn't qualify. She's working part time and I question whether she
has any interest in working more. I haven't received any money for my
share. Home value is approx. $45k
Am I creating a tax problem for myself with such a situation.
Mikek
PS. I'm not happy with this, I thought I'd get some money, but sis has
nothing, a least now she's not homeless.
---
This email has been checked for viruses by Avast antivirus software.
http://www.avast.com
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
John Levine
Jul 19, 2015, 6:35:03 PM7/19/15
to
>Am I creating a tax problem for myself with such a situation.
Probably not. You own half the house, your basis in it is half of
whatever it was worth when you inherit it. When the house is
eventually sold, you'll get half of what it's sold for. Your sister
will have the homeowner's exemption on her half since she lives in it,
you'll pay capital gains tax on the increase in value, if any, on your
half, since you don't. I suppose you could force a sale, but that
sounds like it'd be in nobody's interest.
I'd suggest writing up a simple owner's agreement with your sister in
which you both acknowledge that you each own half, that she gets to
live in it, and in return she is responsible for taxes, utilities,
assessments, and all other expenses due to owning the house. Should
any of those expenses be unpaid when the house is sold, they're
deducted from her share of the proceeds.
If she balks at signing it, you can point out that it makes it clear
that she gets to live there and you don't, which is presumably what
she wants.
Stuart A. Bronstein
Jul 19, 2015, 11:40:04 PM7/19/15
to
amdx <noj...@knology.net> wrote:
> Mom died 3 years ago, left house to sis and I, sis moved into
> the house. Early on she talked about getting a mortgage to buy
> out my half, but she didn't qualify. She's working part time and
> I question whether she has any interest in working more. I
> haven't received any money for my share. Home value is approx.
> $45k
>
> Am I creating a tax problem for myself with such a situation.
As John notes, you don't have a particular tax problem. You won't
> Mom died 3 years ago, left house to sis and I, sis moved into
> the house. Early on she talked about getting a mortgage to buy
> out my half, but she didn't qualify. She's working part time and
> I question whether she has any interest in working more. I
> haven't received any money for my share. Home value is approx.
> $45k
>
> Am I creating a tax problem for myself with such a situation.
incur any tax until the home is sold in any case.
> PS. I'm not happy with this, I thought I'd get some money, but
> sis has nothing, a least now she's not homeless.
could cause family problems.
Have you considered letting your sister buy you out with you, in
effect, being the lender? You establish a price, then she signs a
promissory note and mortgage in your favor. You wouldn't get much
at a time, but it would be something. And she would (hopefully)
have the motivation to pay you.
If you do that, you will pay tax [regular income] on the interest
she pays you (she's required to do that), and the proportion of any
increase in value over the date of death value for the principal
portion of each payment made [capital gain].
--
Stu
http://DownToEarthLawyer.com
Bob Sandler
Jul 20, 2015, 12:30:03 AM7/20/15
to
>Mom died 3 years ago, left house to sis and I, sis moved into the house.
>Early on she talked about getting a mortgage to buy out my half, but
>she didn't qualify. She's working part time and I question whether she
>has any interest in working more. I haven't received any money for my
>share. Home value is approx. $45k
>
>Am I creating a tax problem for myself with such a situation.
As both John Levine and Stuart Bronstein have mentioned, at
>Early on she talked about getting a mortgage to buy out my half, but
>she didn't qualify. She's working part time and I question whether she
>has any interest in working more. I haven't received any money for my
>share. Home value is approx. $45k
>
>Am I creating a tax problem for myself with such a situation.
some point you are going to need to know what the value of
the house was when your mother died. That is going to affect
how much tax you pay when the house is eventually sold, or
when your sister buys out your share. You should get a
professional written appraisal now as of the date of your
mother's death. The longer you wait, the harder (and perhaps
more expensive) it's going to be to get a retroactive
appraisal.
Also, unless your sister is going to buy you out very soon,
make sure that a deed with both your names on it has been
recorded by the appropriate government authority.
Bob Sandler
amdx
Jul 20, 2015, 12:20:05 PM7/20/15
to
On 7/19/2015 11:27 PM, Bob Sandler wrote:
>> Mom died 3 years ago, left house to sis and I, sis moved into the house.
>> Early on she talked about getting a mortgage to buy out my half, but
>> she didn't qualify. She's working part time and I question whether she
>> has any interest in working more. I haven't received any money for my
>> share. Home value is approx. $45k
>>
>> Am I creating a tax problem for myself with such a situation.
>
> As both John Levine and Stuart Bronstein have mentioned, at
> some point you are going to need to know what the value of
> the house was when your mother died. That is going to affect
> how much tax you pay when the house is eventually sold, or
> when your sister buys out your share. You should get a
> professional written appraisal now as of the date of your
> mother's death. The longer you wait, the harder (and perhaps
> more expensive) it's going to be to get a retroactive
> appraisal.
>
> Also, unless your sister is going to buy you out very soon,
> make sure that a deed with both your names on it has been
> recorded by the appropriate government authority.
>
> Bob Sandler
>
Ok, thanks for every ones input.
>> Mom died 3 years ago, left house to sis and I, sis moved into the house.
>> Early on she talked about getting a mortgage to buy out my half, but
>> she didn't qualify. She's working part time and I question whether she
>> has any interest in working more. I haven't received any money for my
>> share. Home value is approx. $45k
>>
>> Am I creating a tax problem for myself with such a situation.
>
> As both John Levine and Stuart Bronstein have mentioned, at
> some point you are going to need to know what the value of
> the house was when your mother died. That is going to affect
> how much tax you pay when the house is eventually sold, or
> when your sister buys out your share. You should get a
> professional written appraisal now as of the date of your
> mother's death. The longer you wait, the harder (and perhaps
> more expensive) it's going to be to get a retroactive
> appraisal.
>
> Also, unless your sister is going to buy you out very soon,
> make sure that a deed with both your names on it has been
> recorded by the appropriate government authority.
>
> Bob Sandler
>
I have an email started suggesting a land contract for 20 years,
$24,000 at 6.25%, paying me $175 a month.
I want at least 6.25% to give her an incentive to get a mortgage.
We did have a realtor do some comparables two years ago, he suggested
a listing price of $46,000.
Thanks, Mikek
Troubled
Aug 3, 2015, 2:10:03 PM8/3/15
to
>
> Ok, thanks for every ones input.
> I have an email started suggesting a land contract for 20 years,
> $24,000 at 6.25%, paying me $175 a month.
> I want at least 6.25% to give her an incentive to get a mortgage.
> We did have a realtor do some comparables two years ago, he suggested
> a listing price of $46,000.
> Thanks, Mikek
>
Just saying that the $46,000 might not be close to your house's value.
taxed and spent
Aug 3, 2015, 2:50:03 PM8/3/15
to
"Troubled" <*@lippman.info> wrote in message
news:b7d53cb6-411f-495c...@googlegroups.com...
>
>>
>> Ok, thanks for every ones input.
>> I have an email started suggesting a land contract for 20 years,
>> $24,000 at 6.25%, paying me $175 a month.
>> I want at least 6.25% to give her an incentive to get a mortgage.
>> We did have a realtor do some comparables two years ago, he suggested
>> a listing price of $46,000.
>> Thanks, Mikek
>>
> I sold my house 3 years ago for 20% less than two good realtors showed it
> comping at after a year on the market.
>
> Just saying that the $46,000 might not be close to your house's value.
The last time I sold a property that had been appraised right before sale, I
>>
>> Ok, thanks for every ones input.
>> I have an email started suggesting a land contract for 20 years,
>> $24,000 at 6.25%, paying me $175 a month.
>> I want at least 6.25% to give her an incentive to get a mortgage.
>> We did have a realtor do some comparables two years ago, he suggested
>> a listing price of $46,000.
>> Thanks, Mikek
>>
> I sold my house 3 years ago for 20% less than two good realtors showed it
> comping at after a year on the market.
>
> Just saying that the $46,000 might not be close to your house's value.
sold the property for 190% of the appraised value.
The most recent property I sold closed at 150% of what the real estate agent
suggested for an asking price.
BignTall
Aug 3, 2015, 4:55:03 PM8/3/15
to
basis, they will want to see a 'qualified appraisal' done by a
'qualified appraiser' valuing the house on the date of your
mother's death. Comps done by a realtor a year after her death are
unlikely to be considered a qualified appraisal, the realtor is
unlikely to be considered a qualified appraiser, and the valuation
date is not the date of death.
I totally agree with Mr Sandler's earlier comment of "You should get
a professional written appraisal now as of the date of your mother's
death. The longer you wait, the harder (and perhaps more expensive)
it's going to be to get a retroactive appraisal."
death. The longer you wait, the harder (and perhaps more expensive)
it's going to be to get a retroactive appraisal."
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