Capital gains tax -
I own a home in Chicagofor over 20 years - I don't live there
a relative does - the home equity loan and phone are in my name - I would like to sell it in the next couple of years but I do not want to pay capital gains tax - what do I have to have listed at that address in order not to pay the tax when I sell it.
2 Answers from Attorneys
Re: Capital gains tax -
It seems that the answer you seek requires more
information than your question asks. The Tax
laws are more complex then you realize. I would
suggest that you consult with a Tax specialist
so that you are in compliance with all the applicable Tax laws involved with your question.
I must also reinterate that your question
is hypothecical and there is no attorney-client
relationship between us.
Wilburn J. Bingaman
Re: Capital gains tax -
There are several federal laws that can be used to avoid income tax on the sale of residential real estate, but these provisions are highly dependent on the actual facts, and in some cases, on what you intend to do with the proceeds.
Your question presumes that the income tax can be avoided by simply changing the name on the real estate before sale, which will not work. YOu may create more legal problems for yourself than the tax you avoid if you try to accomplish tax avoidance without expert advice. M
My recommendation is that you take the relevant papers to an attorney, who can outline for you the various alternative scenarios for lawfully avoiding income tax on the appreciation of the home.
Our comments are based on treating your question as a hypothetical. Accordingly, our comments could be substantially and materially different were we advised of all of the relevant facts and circumstances. Our comments are by necessity general in nature, and should not be relied upon in taking or forgoing action in your circumstances without retaining an attorney. In order to fully explore your legal matter, you should meet with us or another attorney and bring to any such meeting all relevant documents and correspondence, and any other relevant facts.
We are not hired to be your attorney, and no attorney-client relationship exists between us, unless and until you enter into a written retainer agreement with us, tender the agreed amount for a retainer and it is accepted by us. We reserve the right to decline representation should circumstances change.
As you are aware, in Illinois there are various deadlines for filing a complaint, filing an answer to a complaint, or taking other action in order to preserve your legal rights, and avoid a complete loss of those rights. You should retain counsel immediately in order to be fully advised of your rights, and to be fully informed of the applicable time period within which those rights must be asserted. If you were to delay in doing so, it might result in your potential cause of action being forever barred.
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