QUESTION

I buy a home with my son for him to live in. After 10 years, he buys my share for my original investment.Do I have a tax liability?

Asked on May 03rd, 2017 on Residential Real Estate - New Jersey
More details to this question:
My share is 2 thirds of the purchase price and his is 1 third. There is no mortgage. He lives in the home and pays the bills.
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1 ANSWER

Elder Law Attorney serving Toms River, NJ
Partner at Diana L. Anderson
2 Awards
Its a bit hard to decipher your question based on the information you have provided.  I don't know what tax liaibility you would have - there would be no gift tax, unless the entire amount of your estate, and the gifts you've given exceed the federal combined estate and gift tax rate.  Right now that rate is over $10 million.  There might be capital gains tax to your son when he eventually sells the house, if he is not entitled to an exemption or if he exceeds the exemption amount.  
Answered on May 13th, 2017 at 5:43 AM

Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship

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