U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Old Today, 04:24 PM
1 posts
Reputation: 10


Located in Ohio. My son and another relative purchased 50 acres of vacant land as joint owners January 2012 for $83,500, the joint owner passed away November 2012 and my son then became sole survivor owner.
My son then transferred this vacant 50 acres to me (his mother) at no cost in August 2016 and I added my father to the deed as joint owner the same day (there are two deed transfers of ownership on record (1st) from my son to only my name then (2nd) from my name to my name and my father jointly.
This vacant property is now being sold for $60,000 in 2019.
My father is on social security income only and has not had to file income tax for several years, my annual income is $12,000-$15,000, Okay now the question is would we be responsible for capital gains tax and how is it calculated? Thanks for any help
Reply With Quote Quick reply to this message

Old Today, 04:29 PM
Location: Raleigh NC
8,424 posts, read 6,616,497 times
Reputation: 7559
you're telling us the sale price today (60K) is less than the purchase price 7 years ago?

there is no gain to be taxed.

so your capital gains are $0.

Unless your son took a capital loss of $83,500 when he transferred to you, and truly reduced your cost basis to $0. Then your own gain would be on the net after expenses on the $60K.

But since you used attorneys for all these deed swaps, I'd start with that attorney, and your tax advisor, or the one they recommend you to use.
Reply With Quote Quick reply to this message
Old Today, 06:40 PM
6,404 posts, read 7,615,901 times
Reputation: 10954
Capital gains tax is calculated based upon the profit--not upon the selling price. Although the exact basis may be somewhat in question, it is practically certain that you will not have a profit on this sale; hence, no capital gains tax. (When your son gifted the property to you in 2016, you assumed his basis in the property--and he would have received a partial stepped-up basis in Nov. 2012.)

My question to you, however: are you sure that the property is only worth $60,000? That seems unusual that it is worth less than it was in 2012. You may want to contact some real estate professionals--those who work with land-- to see what they think the property is worth. If you can sell the property on your own, that's a plus...but an agent may be able to secure a better price for you. That's something that needs to be taken into consideration.

Of course, if you're already under contract it's too late to review your options.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top