have joint account (jtwros) with my father, funds where recently deposited by him from a real estate sale. If we close the joint and open up sole accounts and all the monies are deposited into my new sole account do I have to pay taxes on that now or later, it's well over 7 figures...
2007-04-08 14:19:05 · 2 answers · asked by lv_consultant 7 in Business & Finance ➔ Personal Finance
I don't think it matters which account the money is deposited in. The taxes are based on the selling of the property. Therefore, the taxes will have to be paid when you file taxes next year. Depending on who actually owned the real estate and sold it (you or your father) will determine who pays the taxes on the sale.
2007-04-08 14:28:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Taxes are based on the property that was sold. Most state have a Capital Gains tax. Whoever owned the property would be responsible for the taxes. If that person would die (god forbid) the estate is responsible for the taxes. If you stay in the same bank, they will notify the IRS as to a substantial deposit. They are obligate to do so by federal law. You will have to explain where the funds came from. This can get risky at times. Be careful. The IRS is rude about getting money
Good luck
Bob Laibach
www.gogreedy.com
2007-04-08 14:35:04 · answer #2 · answered by Robert L www.gogreedy.com 2 · 0⤊ 0⤋