[jpawayzata]

We are inheriting a 1/4 of property from family. The deed has not yet transferred. We are negotiating with the other 3 individuals to buy them out. We could either have the deed transferred over to all four individuals AND then have a second deed issued once we buy out the others OR have the buyout take place prior to the deed transaction and just have the deed transferred to us from the estate to begin with. Is there a benefit doing one way over the other from a tax perspective? Does it matter to begin with since the property is not being sold to a third party? Do we need to worry about capital gains from a tax perspective? The total value is less than $200K for the property so we would not be taxed for the inheritance.

Thanks for your help.

[ScottGem]

I think it depends on whether what you will be paying for the property is more or less than the cost basis (the value at the time of death).

[AtlantaTaxExpert]

In my opinion, if you could negotiate the buyout BEFORE the estate distributes the property, you could then essentially buy the property direct from the estate.

That way, there is only ONE title transfer from the estate to you, which is much simpler.