My mother passed away in 2005, she left the house to my 2 brothers... their names were already on the deed. Bro#2 wanted his money, so in 2008, Bro#1 borrowed on his own home 250,000 to pay Bro#2.. . Not sure who decided the value at the time, but Bro#1 paid Bro#2 175,000 cash, with a Quit Claim Deed... so Im figuring 350,000 was the value at the time mom died.. And the property was reassesed and the taxes went up 10 times... Assuming this is the case, bro #1 is now going to sell the house to me, for 250,000... to pay off his home loan, will he have to pay any taxes at all on this transaction..
Any help would be greatly appreciated... Thank you... Patty

If the brothers were already named on the Deed they were basically co-owners with your mother and the property did not pass through the estate. It would go right to them.

Is that what happened?

Or are you asking about Capital Gains Tax or something else?

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Originally Posted by JudyKayTee

If the brothers were already named on the Deed they were basically co-owners with your mother and the property did not pass through the estate. It would go right to them.

Is that what happened?

Or are you asking about Capital Gains Tax or something else?

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Yes that is what happened. So now when Br0#1 sells the house what happens, capital gaines? Or does it have anything to do with inheritance at all?

Nope, Inheritance doesn't come into it.

The question is what they paid for the house when they went on the deed.

Zero...

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Originally Posted by ScottGem

Nope, Inheritance doesn't come into it.

The question is what they paid for the house when they went on the deed.

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They paid Zero... doesnt this have something to do with the trust? Should we check out the wording on the deed? She did that to avoid inheritance issues...

Umm trust? You didn't mention a trust before. Yes the wording of the trust should give you a clue. Is the attorney that prepared the trust available?

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Originally Posted by ScottGem

Umm trust? You didn't mention a trust before. Yes the wording of the trust should give you a clue. Is the attorney that prepared the trust available?

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Yes the attorney is still around... Im just totally confused... I want to buy the house from my brother... he wants to make sure he isn't going to get dinged tax wise... He wants me to find out all the info and if the fact that he had paid Bro#2 and the quit claim deed messed it up or not... or what he will have to pay taxes on if any... he still calls it inheritance... and thinks he shouldn't get taxed on any of it unless it gets sold for more than it was worth in 2005 when she died? Or when the taxes went up in 2008 when he made the transaction with Bro #2?. Would the attorney be the one to ask? Or the county tax assessor?