All Forum Posts by: Kevin Duke

Thank you Frank.

Thank you Ashish. Very informative. 

Thank you Bill. Great information. There was a discussion about transfering ownership prior to subject A's death. Thank you for your insight on this. 

Hello and good morning. I'm looking for a Real Estate tax attorney in the Palm Beach county, Florida area that has experience in tax matters pertaining to a real estate inheritance. Thank you in advance for your advice or recommendations.

Hello. I need your expertise on a matter of real estate inhertitance. Subject A is leaving Subject B his home upon his passing. Subject A's total net worth is roughly 6 million dollars. The property is located in Palm Beach county, Florida with an estimated worth of $850,000. What is the best way to set up the inheritance to minimize income taxes? As I understand it, Florida does not have an inheritance tax on property, and the federal inheritance tax is levied on estates greater than 12 million dollars. 

Any advice would be appreciated. Thank you in advance for your help.

Thank you Colleen and David for your advise and for pointing out my error in the profit calculation. I will talk with a CPA and attorney as you suggested. While both the husband and wife are both on the deed, the husbands interest in the house of $30,000 is an agreed upon number by both the husband and wife. They are legally married but live separate lives. She has paid for all costs associated with the home in question for the last 20 years. He has his own expenses in his residence in Massachusetts. The $30,000 is the amount he borrowed from his mother to purchase the home 32 years ago. He is not looking to profit at all. Just pay back what was borrowed. Again, thank you very much for a solution to a seemingly complicated situation. 

Thank You Lien. I looked into "Gifting" as a possibility. The gifting option appears to be a taxable event. The person/entity who is giving the "gift" is still responsible for the taxes on the gift.

New York state utilizes form IT-2663 that a non resident must fill out upon the sale of a home if the property resides in New York state. It requires the non resident to pay an upfront tax fee equal to 10% of the selling price. When the non resident has paid this tax at closing, then and only then can the non resident file a tax return in New York state for the tax year the home was sold using the (sale price - the cost basis) method of establishing the true "gain" and apply for a refund from the tax that was paid at closing. 

This scenario requires the non resident to remove himself from ownership of the property altogether prior to the closing date so his wife and only his wife has 100% ownership, thereby having zero tax implications. All the proceeds from the sale will pass through his wife.   

Here's a situation I've come across. How would you handle this?

- A married couple owns a home on Long Island, NY.  They haven't lived together for 20 years
- He is an out of state resident residing in Massachusetts, she has lived in the home for 32 years

- The selling price of the home is $385,000
- The current mortage payoff number is $123,000
- His payout of the sale is $30,000
- Her payout of the sale is (385,000 - 123,000 - 30,000 - closing costs)
- She qualifies for the 250,000 individual capital gains exemption as her primary residence is the property being sold.
- He is an out of state resident residing in Massachusetts
- He wishes to remove himself from the deed and transfer his interest in the property to his wife

He wishes to avoid paying any taxes on his portion of the sale

Any suggestions?

Thanks in advance,

Kevin