Estate Tax-Federal Estate Tax

Ragdoll Kitty asked:


We’re considering selling a couple parcels of land to someone who will develop 4 “mini farms”. He is considering building for us on a separate parcel. We own a duplex right now, but are eager to build our “dream house” on a piece of this land. So his 4 “minifarms” and our separate parcel. What are the tax consequences (ie when you sell your home & buy a new one there really aren’t any for the average homeowner). But what if we sold the property for example $200K and built a new home for $200K?
We’ll be living in the duplex till a home is built, so it’s the capital gains we wonder about. Not sure if there’s a better place to post this. Ultimately, we’ll probably sell the duplex, but for now we need to live there.
Would we be better off w/a tax lawyer, RE lawyer or an accountant. As a RE Broker, maybe you know.

Jama Mounger

Dispirited asked:


Okay I am 20 yrs old, single, never married, no kids. Washington state resident. I just bought a duplex (resedential real estate w/ tenant) It IS my primary residence and I am suppose to live there although I don’t. No one knows that. I work under the table (no tax deductions) so I have no proof of income whatsoever. I pay interest for 2 yrs w/ the mortgage I got. I heard a lot about claiming “tax deductions” on the interest, if I work under the table and possibly will get a second just making under $800 a month and I will claim 0. What will the tax deductions on the property give me? Will I get a bigger tax return? Will they pay me back some of the taxes I paid to the mortgage company? Please explain it to me. I deeply appreciate it. Thank You!
Well I do appreciate you honesty. I am a full time college student in order to qualify for financial aid I cannot have a job and I am afraid if I do claim they will make me pay for financial aid which brings me harm because I cannot pay my bills. So I work under the table, I obtained a loan w/ no proof of income called stated income loan (my credit is wonderful) So basically because of my credit I got the loan. I am not trying to lie or cheat, I am not trying to get a easy way out. It was an innocent questions. Thank You =)

Florene Lopardo

K A asked:


Here’s the deal:

My grandpa is aging and I’m concerned about his estate and the effect of estate taxes in the event of his passing. My grandpa is long-retired and has only enough in cash to live out the rest of retirement. Inheritance-wise, his house is all that will be passed on to be distributed between 3 siblings. However, the house that will be passed on is a large estate worth in excess of $12 million. Is there any strategy that could be pursued that would avoid having to liquidate the estate postmortem in order to pay the estate taxes? As a side note, none of the siblings receiving the inheritance have sufficient cash to pay what I’ve estimated to be millions in estate taxes. Can payments of the tax be extended over a longer period of time to make them manageable for the siblings? Are there any other possibilities?

Thanks for your help.

Ben Rentas

Brian H asked:


When I closed on my house in January of 2008, the previous owner apparently owed back taxes from 2006. The line on my HUD-1 says “2006 RE Taxes – Cert #__________ to County Tax Collector” paid by seller. Since real estate taxes are deductible is that something that I as the buyer can include in my real estate tax deduction?

Alena Bordeau

fled asked:


IRA is what I meant to say. Sorry.

What are tax consequences if the estate of the deceased is the beneficiary of the deceased persons IRA? Is the estate immediately subject to income tax on the full amount of the IRA?

Margaret

The Advantage asked:


I purchased a house in Suffolk, Virginia November 2006. I just received a bill from the city for a real estate tax. It has information concerning land values, building values, etc… So my question is—Is my real estate tax my property tax or is this something different. If it is my property tax, then this should be taken care of from my escrow. Any info. you can provide would be appreciated!

Larry

Zack asked:


Although the estate tax is taking a hiatus for several years what is your view on it coming back in 2011 and do you feel it is fair or unfair to small, business owners?

Allan Rastegar

rwhz199 asked:


Due to inherit some stock in the family business.

Some property will be sold as stated in will to pay tax, but still a shortfall of cash that must come from the business,will I have to reimburse the business when I sell the stock? The sold property covers the taxes except for the one who inherits the most stock, terrible planning!

Cecelia Mcfeeters

epow asked:


Say that I create a trust of $1,000,000 exempt from the Generation-Skipping Transfer Tax for my grandchildren. In the situation where I die and all my lineal descendents die before the trust terminates, my will states that the trust goes to my sister and her descendents. If that happens, is the trust still exempt from the GST tax? If not, what are the tax ramefications?

Sean

Larry asked:


Selling an investment property on a short sales but am required to sign a promisary note for the difference, approx $50k, am I amble to claim as a deduction on my federal taxes?

Katelynn Giesing