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-   -   Sale of Rental - iJoint Bank Account - Inheritance Tax? (https://www.askmehelpdesk.com/showthread.php?t=114307)

  • Jul 28, 2007, 11:31 AM
    pacific nw
    Sale of Rental - iJoint Bank Account - Inheritance Tax?
    We bought a house in 2001 and have had it rented out since then. We bought for $157,000 and it is now valued at $550,000.

    1) If we sell our rental and put the remaining proceeds in a joint bank account with our two adult children, does the money have to go through probate if both my wife and I pass away? (Do they have immediate access to the proceeds?)


    2) Are the proceeds subject to inheritance tax?
  • Jul 29, 2007, 09:46 AM
    AtlantaTaxExpert
    1) You will have to pay capital gains on the house, as it is considered a business property, NOT a primary residence eligible for the $500,000 tax exemption.

    2) No other taxes will be due. If you give your adult children equal axxess, it would be considered a gift, and a gift tax return would have to be filed. However, you would access your Unified Credit (the credit given as part of the estate tax return) to exempt any taxes due.

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