Capital gains tax on property
MY mother has given my brother and I a house free and clear. It is not our primary residence. When my brother and I go to sell the property will we owe any capital gains tax
1 Answer from Attorneys
Re: Capital gains tax on property
ABSOLUTELY! Since the property was a gift, you received a "carryover" basis. This means the basis in the property is the same as your mother had. The difference between the sales proceeds and the basis is capital gain.
Depending upon your circumstances, either you or your brother may try to make this your primary residence for 2 years to take advantage of the $250k capital gain exception.
I hope this helps!