Inheritance of house from Granny...

[taxguy057]

Got a client that owed 1% of his granny's house. When she died, he received the other 99% ownership. I read the pub. on Gifts and Estates and it basically says he will not have to pay any taxes for the exchange, but he wants to know does he get any other benefits from getting the house. I don't know of any others... :scratch_head:

[Lion EA]

Well, he now owns 100% of a house that he can sell or live in or rent or keep to fondly remember granny.... What benefits was he hoping for? Magic carpets?

[Terry D EA]

It seems to me this guy got a huge benefit of a house for free and no taxes to pay. Is he greedy or what? Geez! Even if he sells it 10 years from now, he still gets a benefit of the basis at time of death. Win win. He still gets free money reduced by taxes on the gain that he didn't have in the first place.

[kcjenkins]

The 'benefit' is that his basis in the house is now the FMV of the house on the day Granny died. That means if he sells it now he has no taxable gain. That is about all the tax benefit.

[taxguy057]

THX everyone! I pretty much figured the same! You know be happy you gat the house free and clear! I had to ask being with all the new changes in the housing arena. Again thx a whole banana bunch! ;)

[jainen]

>>does he get any other benefits from getting the house<<

Depending on the details, if he lives there he might be eligible for the Family Home Tax Credit. One of the details would be the effective date of such legislation, which has not been proposed yet. (I just made it up.)

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>>I had to ask being with all the new changes in the housing arena.<<

I know what you mean--that update class was tough. (I just made that up too.)