[NY] Hello. The title lists my sister and me as joint tenants. In addition, my mother, who has owned the home for more than 40 years, is intending to sell it. I hope I have this correct. I’m anxious about paying capital gains taxes because my sister lives in Virginia. Is this accurate? Before she sells the house, she told we must complete a “quit deed” to remove our names from the title. Have no one else to ask for assistance from
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When selling a property, you and your sister, as joint tenants, must report your share of any capital gains on your tax returns. The amount of tax depends on how long the property was owned and your tax brackets. If the property was your mother’s primary residence for at least two out of the last five years, she might be eligible to exclude up to $250,000 (or $500,000 if married) of the gain from her taxable income. To transfer ownership using a quitclaim deed in New York, the deed must be drafted with specific legal language, notarized, and filed with the county clerk. It’s wise to consult both a tax professional and a real estate attorney for proper guidance.
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Hey lorelei,
listen to this,How this concept operates and its implications for joint tenants.
The process of dividing jointly owned property when the joint tenancy is terminated.and also How joint tenancy can help achieve your estate planning goals.
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Your understanding seems correct. As joint tenants, you and your sister could be liable for capital gains taxes upon the sale. Your mother’s plan to complete a “quit claim deed” to remove your names might be a strategy to address this. Consult a tax advisor or real estate attorney for accurate guidance.
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This situation sounds so messy! You might wanna consult a lawyer on how to go about it. That’s the only way you’re sure of the right advise/assistance. Otherwise, I personally think only the owners of the house are subject to pay capital gains, You’re safe if you’re just renters.
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When two or more persons possess a property jointly with equal rights and duties, this is known as joint tenancy. Every cotenant has an equal stake in the real estate. Probate is avoided when a joint tenant passes away since their interest instantly transfers to the remaining joint tenants. Four requirements must be met in order to establish a shared tenancy: time, title, interest, and occupancy.