Can my brother buy my one half interest in our house with cash and how does that affect the IRS and related matters?

Regarding taxes, if your brother buys your one-half interest in a home, you must pay state and federal income tax on any capital gain. Capital gain is the difference between what you are paid for your interest and your tax basis. If you recently inherited the property, then your tax basis is the fair market value of your half of the property as of the date of death. If someone gave you the interest in the property before that person died, then your tax basis is that person's tax basis. If that tax basis is low, then your capital gain and the capital gain taxes might be large. Is there a loan secured by a deed of trust on the property? If so, the sale to your brother does not cancel your liability under that loan. Since the security for the loan is a home, the lender cannot sue you personally for the loan. It can only foreclose on the property. However, any late payments or defaults may show up on your credit report and may affect your credit rating. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack