ScotsmanUS
Confused about dryer sheets
We are planning to gift our son our current Primary Residence when we move back to the UK in our late 70's.
I expect the home to be worth say $700,000 with $200,000 remaining on the mortgage. Since its our Primary Residence and will have been for over 2 years I assume I get the $500000 Married Filing Jointly Cap Gains deduction, if that even comes into the deal.
My desire is to simply give/transfer title to him but I assume it isnt as easy as that for tax reasons. If I file my taxes that year to show the correct value of the home minus costs to determine a theoretical Gain, then deduct the $500,000 exemption and pay tax on whats left can I just gift him the home and deduct the amout from our lifetime Inheritance amount ??
Or, how else can I do this
Thanks
Brian
I expect the home to be worth say $700,000 with $200,000 remaining on the mortgage. Since its our Primary Residence and will have been for over 2 years I assume I get the $500000 Married Filing Jointly Cap Gains deduction, if that even comes into the deal.
My desire is to simply give/transfer title to him but I assume it isnt as easy as that for tax reasons. If I file my taxes that year to show the correct value of the home minus costs to determine a theoretical Gain, then deduct the $500,000 exemption and pay tax on whats left can I just gift him the home and deduct the amout from our lifetime Inheritance amount ??
Or, how else can I do this
Thanks
Brian