ANSWERS: 1
-
If your brother "buys you out" directly you will pay long-term capital gains taxes on whatever you make on the sale (that's 15% on your gain). There are capital gains exemptions for the sale of a home, but they will not apply to you since it isn't your primary residence. If 15% is too much for you there may be another option... --DISCLAIMER-- I am not a tax professional. Anything below this should be reviewed with your professional accountant to conclude whether it is right for you. --END DISCLAIMER-- You could sell the house to your brother for $1.00. He could then give you a gift in the amount that you both think your share in the house is worth. The first $12,000 of that amount is excludable on both of your tax returns. The remaining amount can be excluded using the Unified Credit (Applicable Exclusion Amount) for gifs (your accountant will know what this is). This will have tax consequences for both you and your brother so you should DEFINATELY council with your accountant to see if this is better for both of you than paying 15% in long term capital gains.
Copyright 2023, Wired Ivy, LLC

by 