My sister & I inherited a cottage (in a place where we do not own the land itself, so the house is considered personal property). She is going to buy me out. The question is, which would make more sense taxies: for it to be a sale between us, or for her to give me the money as a gift? (The property is still in probate.)
USA To sell my half of inheritance to sis or have her give it as a gift?
- Thread starter JoMama
- Start date
There should be little or no taxable gain on a sale if the property was recently inherited since basis should be fair market value on date of death in most cases.
Gifting may result in gift tax consequences if it exceeds the annual exclusions. But also there is no gift if she gives you something in exchange for your share of an asset. It is a sale.
Gifting may result in gift tax consequences if it exceeds the annual exclusions. But also there is no gift if she gives you something in exchange for your share of an asset. It is a sale.