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Inheritance property?

MAYFERNANDEZ
Level 2

Parents give their rental property to their kids? Is this consider Inheritance even though parents is still alive? How about if kids decided to sell the rental property, Is capital gain taxable.

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2 Comments 2
poolcleaner
Level 9

It is not an inheritance, it is a gift that carries the parents' basis with it. The gain, if any, will be taxable. It is not necessarily capital gain.  You may want to do some reading about Section 1250.

qbteachmt
Level 15

You might direct them to a lawyer that handles Life Estates, to see if this situation can be salvaged, or it might be too late.

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