Results 1 to 3 of 3
  1. #1
    Join Date
    Mar 2009
    Posts
    2

    Default Capital Gains on Warranty Deed with Life Estate

    My question involves estate proceedings in the state of: Florida

    My grandmother gave my mom a warranty deed with a life estate to my grandmother. I've read about life estates and about warranty deeds, but I can't find out what taxes are involved when the warranty deed says "with life estate". For the sum of $10.00 it says the land was conveyed to my mom. The deed was made in 1997 but my mom did not record it until my grandma died in 2007. She is now intending to sell the house (she doesn't live there) and she isn't sure whether she will have to pay capital gains or not. If she does have to pay capital gains, what is her basis?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Capital Gains on Warranty Deed with Life Estate

    It was recorded after grandma died? That could be problematic.

    Normally, in this type of situation, you get a step up in basis when the life tenant dies. But if the deed was in fact registered after the grantor's death, your mom should consult a Florida real estate lawyer about the possible ramifications.

  3. #3
    Join Date
    Mar 2009
    Posts
    2

    Default Re: Capital Gains on Warranty Deed with Life Estate

    Thank you for your response. Yes it was definitely recorded after my grandma died. My mom had been worried about it causing problems for my grandma if she recorded it while she was alive. I'll let her know to see a lawyer.

    1. Sponsored Links
       

Similar Threads

  1. Life Estate and Capital Gains Tax
    By taxhater in forum Estate Planning, Administration and Probate
    Replies: 3
    Last Post: 06-26-2009, 08:09 PM
  2. Capital Gains Taxes on a Life Estate
    By 445orange in forum Tax Law
    Replies: 5
    Last Post: 06-19-2009, 05:27 PM
  3. Capital Gains on a Life Estate
    By tauruz in forum Tax Law
    Replies: 4
    Last Post: 06-18-2009, 08:03 AM
  4. Capital Gains Basis on Land From Life Estate
    By greenbug5 in forum Tax Law
    Replies: 14
    Last Post: 05-25-2007, 06:01 AM
  5. Life Estates: Life Estate Capital Gains on Sale
    By miamad in forum Real Estate Ownership and Title
    Replies: 1
    Last Post: 09-21-2006, 05:57 PM
 
 
Sponsored Links

Legal Help, Information and Resources