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Originally Posted by Vleka
I need some advice. My mothers home is also in my name. She has passed away and I need to sell her house and split the money three ways with my siblings. What is the best way to do that without everyone getting dinged by taxes? Can I gift it to them? Can I just deposit my share in the bank or do I have to reinvest it in another house? I would appreciate any advice you can give me. Thank you.
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You should ask tax expert or estate attorney this question. But, if the entire house is an inheritance (stated in a will) to all three siblings, then there are no taxes due. But, if you inherited the entire house, and you are giving the other siblings a share of the proceeds as a gift, your siblings would not owe any tax, but you may owe an estate tax, depending on the amount of your total estate. To eliminate the estate tax, you could deposit the money into your bank account, and give them $16,000 per year each until all the money has been gifted. Another way to do it is to lend them their share with an official loan document, and then forgive $16,000 of the loan every year as a gift. This would ensure that your estate tax liability would not increase.