If my father quick claims a piece of land to me...will I have to deal with capital gains?

Answer 1

The "quit claim" is a non taxable event. It will have some tax consequences in the future for either you or your father depending on the amount (FMV at the time of transfer). If this is a large transaction it would be wise to get an appraisal as close to the transfer as possible and keep good records.

Answer 2

capital gains is only if you sell the land. If the quit claim was a gift from your father, then it is not a sale to your dad. However, if the land is encumbered with a mortgage, it make be considered a part gift/part sale and then capital gains tax may be due from your dad.

you will have a carryover basis in the property. when you sell, tax may be due.

--


Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency.

Answer 3

you mean "quit claim". if the land is under $10,000 in value, he can call it a gift. anything above that, & the IRS will likely consider the market value of the land as income so you'll get the priviledge of paying taxes on that income, plus you'll inherit local real estate taxes on the land.

Answer 4

Yes when you sell it your cost basis will be his original cost. Ask him for it now so you have it when you sell. If you don't do this and you inherit after his death your cost basis will be the value at death. Much better if it has gone up in value since he bought it.