Eleven years ago, the deed to my mother's house was put in my name when she died. The house was mortgage free. I promised that my sister could always have it ( Dead beat ex husband - many outstanding debts, etc.)- My youngest sister and her children have lived there ever since. I would like to give the house to my sister so she can take out a mortgage and do many needed upgrades on the house. My sister's ex husband's bad debts will no longer be an issue for her. Can I give the house to my sister without paying capital gains taxes, and will there be a gift tax?
1 Answer from Attorneys
Most likely not, since you are gifting the property to her and not making any money off of the gift. HOWEVER, I strongly recommend that you consult a CPA or your tax adviser for more specifics on the tax implications of this transaction.
Best of luck.*****The above is for informational purposes only and does not create an attorney-client privilege******