My brother inherited our mothers house this month, December 2010, in the state of Ohio. There is no mortgage on property. It is worth approx 100k based on what other houses in area have sold for in 2010, but my brother lives there, as he had before she passed. Can I sign a quit claim deed and in two years he refinances or gets a loan for my half, is this legal? Will either of us have to pay capital gain taxes?

If your brother inherited the house where do you come in? Only an owner can sign a quit claim deed. Or did you BOTH inherit? If you both inherited, then he can buy you out whenever he has the money.

Do you mean your brother and YOU inherited a house ?

If you quit claim a deed to him for your half of a house, there is nothing to require him to pay you ever, except trust, and if you read about 10,000 posts on here you find that seldom happens.

Best bet, keep ownership of it for two years, let him borrow the money then to pay you for the 1/2 of the home.

Selling your half to him will be taxed, and you can't hide behind a really low price for relatives.
You could get creative.
I'd do a lease to own agreement. Basically rent with interest, with the $ applied to the sale in X years. Like a mortgage, but deed doesn't go in his name until the end, even though the price is set now. A lawyer can help with that for not too much. That way you retain ownership until you know he really is able to afford it. Be clear about payment of property taxes and major repairs. You pay half. He pays for all maintenance.

I'd go over his financials with him to see if he is prepared to pay even property taxes and heating and all that on his own. It won't be cheap even without paying you monthly. Two years goes by awfully fast. You may have to consider a grace period for him to stay there and an eventual forced sale, sadly.

We both inherited the house, sorry. If I take my share now, I will have to pay taxes on the money I receive. We were told perhaps to give my half to him now and in 2 years, since he lives there, he buys my part out so I don't pay taxes.

Yes BOTH of us inherited the house. I don't live there, he does, so he doesn't pay the capital gain tax, but I would the way I understand it. I thought if I gave him my half, he can then finance in 2 years so I don't have to pay taxes.

Yes, the house was left to both of us.

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First, please don't use the Comments feature for followups, use the Answer options instead.

Who told you would have to pay taxes on the money you receive? The house was just inherited. Therefore, the cost basis is the current value. So if it was appraised at $100K and he buys you out at $50K, then there is no gain, ergo no tax. The estate is responsible for any taxes so you don't need to pay taxes on anything you receive DIRECTLY from the estate. If you wait two years then the house may have appreciated in value over the $100K and you would have to pay capital gain on any increase over the cost basis.

if you "give" your share to him now, then your might have to pay gift taxes. But, more importantly, he now owns the house and doesn't owe you anything. You could sell him your half with a balloon note that comes due in 2 years. That should postpone your tax liability, but that's unnecessary since, if he buys you out for the current value then you will have no capital gains.