QUESTION
How can my boyfriend owe capital gain on 2 land contracts if he doesn't own it?
Asked on Sep 04th, 2013 on Estate Planning - Washington
More details to this question:
My boyfriend's mom is now in a nursing home with memory loss, Her 2nd husband (not my boyfriend's father) of 35 years passed away a month and a half ago, now his children say she owes capital gain on 2 land contracts but they inherit the land.
7 ANSWERS
Thomas Edward Gates
If the property was sold before a transfer of ownership, the individual or couple (in community property state) would owe the capital gains. If the property was owned only by the husband, he would be responsible and, if he did not pay it when he was alive, his estate would owe it. The property could not be transferred to the beneficiaries until all debts have been paid.
Answered on Sep 11th, 2013 at 5:20 PM
Yes, that is unlikely. It could happen in some weird partnership situations but probably not here. Hire an attorney and get the real documents.
Answered on Sep 11th, 2013 at 5:20 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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You need to go to an accountant and ask the accountant. Without the details, it is hard to say. The accountant will know the questions to ask.
Answered on Sep 11th, 2013 at 5:20 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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I do not see where there would be any capital gain in this scenario, at all. I think the kids are wrong. You may need to hire someone to protect his mom, though.
Answered on Sep 11th, 2013 at 5:20 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Boyfriend's mom has the option of filing a joint tax return with her deceased husband for 2013, or filing separately. Assuming she filed jointly with husband in prior years, that may be how she is supposed to owe tax, but there may be an "innocent spouse" defense. These questions can't be resolved on a list serve; someone is going to have to review Mom's situation; there are probably lots and lots of decisions that need to be made. Get on this now assuming Mom is in Oregon, even if husband's will attempts to disinherit her she is entitled to a "spousal share," but she needs to petition for it now. Get counsel on this, don't miss deadlines.
Answered on Sep 11th, 2013 at 5:20 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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You are advised to seek the advice of an accountant for your tax questions.
Answered on Sep 11th, 2013 at 5:20 PM
3 Awards
She may be able to file separately on the 1040. Seek a meeting with a CPA to determine if that will resolve it or if you need legal counsel to review everything.
Answered on Sep 11th, 2013 at 5:20 PM