Legal Question in Tax Law in Maryland

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?

Asked on 2/15/11, 11:03 am

1 Answer from Attorneys

Phillip M. Cook Cook Legal Services, LLC

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******

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Answered on 2/16/11, 4:55 am

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