[Boomer]

I am not a CPA or an attorney, but you definitely need to meet with one. When it comes to estate tax, attorneys often refer to an accountant anyway — or some law firms have them in-house. I would not use a financial planner for this — unless they also happen to be tax accountants. This is most likely beyond regular tax preparers.

(I think there are places where lawyers take a percentage of the entire estate — not just their hourly. I don’t know how that works though or if it varies by state and/or custom. But it’s good to be aware of the possibility.)

I doubt that estate tax will be an issue because very few estates exceed the Federal exemption which is 12.06 million for 2022 and I don’t think Florida has a state estate tax.

In 1997 the tax law changed to the benefit of those selling their primary residence. Before that time, investing in a bigger house was the only way to avoid capital gains tax on profit.

The 1997 tax law change was also when the taxpayer-friendly exemption of $250,0000/$500,000 meant no cap gains tax on profit below those single/married amounts if the owner had lived in the house for 2 years. . .actually I think it’s two out of 5 years before selling. (Small builders and small flippers love this 1997 tax law change — along with the rest of us primary residence homeowners. It was that 1997 tax law change that allowed a lot of people to downsize — and to happily get a tax-free chunk of change at the closing table. This can be especially beneficial to retirees.)

But yours is not your primary residence, so therein lies the rub — or one of them anyway. If you need to close the gap between the house’s purchase price and selling price, see if you can find records of any improvements. If you use a real estate agent, I am pretty sure their fee can become part of closing that gap. (But, I reiterate — I am not an attorney or an accountant.)

The gift tax exemption for 2022 is $16,000 per recipient. But I think some tax forms might need to be filed anyway because of the lifetime gift exemption — not sure though.

This could get a little complicated. I am assuming the type of deed means you are now the full owner of the house, making you the one who will have to take any capital gains tax hit. Your siblings will not. I don’t know if living in the house for 2 years, as your primary residence, would help you or not. That probably would involve the bigger picture. And I am not sure how you establish cost-basis on this anyway. Better ask though.

I better stop now, other than to advise you to get professional advice as soon as you can. Write down all the questions you have and take them with you to your appointment. Going in prepared and taking notes is going to help you get a handle on this situation.

Good luck to you — and I hope your relationship with your siblings is a really good one. They say you never know someone until you have to share an estate with them. (And please do not comment on that here. And do not give any numbers for amounts involved. It’s none of our business.)

Boomer

PS: I can pretty much guarantee that you will get contacted by private message here, with inquiries about the house you plan to sell. But your first order of business is to get professional advice. (If it were me, I would start with a CPA.)

PPS: Also, please keep in mind that it is quite possible that I have no idea what I am talking about.