Hi everyone, I'm new here and I reside in California. I have a question about selling of the home my parents transferred to me.
I moved back in with my parents in 2005 when they moved up from LA to San Jose, CA. Then in 2008, after 3 years of living with them, they transferred the deed to my name and I continued with live with them in that home.
That same year in 2008, I bought a condo with my future husband and it was under both our names although I continued to live with my parents until I got married in late 2008/early 2009 and I still go between the two homes.
Actually my mom passed early 2009 and it's just my dad living at that home and that is the reason why I go back several times a week. I pay property taxes for my parents home since my parents did not have any income.
So right now, my sister and I and my dad are thinking about selling the home and have my dad move in with my sister, taking a part of the money from the house sale as a down payment for a bigger home with my sister and brother in law. The house is fully paid. It was purchased in 2005 for around 750k, and now, the worth is only around mid 500k.
If I were to sale the home, what are the tax implications? There's practically a loss of 200k since my parents bought the home in 2005, and at least 100k loss from 2008 when they transferred it to my name. Would it be considered a capital loss? I currently still have majority of my mail at that home and I still pay property taxes and utilities there and stay there couple times a week. But if saying I lived there majority of the time, it would be from 2005-2009, and half time from 2009-now.
Thanks!
I moved back in with my parents in 2005 when they moved up from LA to San Jose, CA. Then in 2008, after 3 years of living with them, they transferred the deed to my name and I continued with live with them in that home.
That same year in 2008, I bought a condo with my future husband and it was under both our names although I continued to live with my parents until I got married in late 2008/early 2009 and I still go between the two homes.
Actually my mom passed early 2009 and it's just my dad living at that home and that is the reason why I go back several times a week. I pay property taxes for my parents home since my parents did not have any income.
So right now, my sister and I and my dad are thinking about selling the home and have my dad move in with my sister, taking a part of the money from the house sale as a down payment for a bigger home with my sister and brother in law. The house is fully paid. It was purchased in 2005 for around 750k, and now, the worth is only around mid 500k.
If I were to sale the home, what are the tax implications? There's practically a loss of 200k since my parents bought the home in 2005, and at least 100k loss from 2008 when they transferred it to my name. Would it be considered a capital loss? I currently still have majority of my mail at that home and I still pay property taxes and utilities there and stay there couple times a week. But if saying I lived there majority of the time, it would be from 2005-2009, and half time from 2009-now.
Thanks!