Grandma owned her house free and clear (in PA). Her grandson was living with her while he went to school from 1998 until 2004. In 1999, she added her daughter (who never lived there) to the deed.
In 2005, she became unable to live on her own, left her home and moved into her grandson's house.
Before leaving her home, she transferred her remaining half of the house to him, so that he now shares ownership with his mother.
Mother and son now want to sell the house, which has been empty (not rented) since grandma left (she had a lifetime tenancy written into the deed and recently died).
With no mortgage and no purchase price paid, is the entire selling price considered capital gains?
Also, we're aware of the 2 year ownership/living stipulation. Does it matter at all that the grandson lived in the house for 6 1/2 years, but only owned it for two and it wasn't his primary residence during those two years? Is there anyway to reduce CGT? (and what is the current rate anyway?). Thanks much
2007-07-30
05:34:59
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4 answers
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asked by
Wonderland
3
in
United States