Just say my parents have just bought 2 homes for residential use only.. they do-not want to rent theses homes out but live in them both (One is on one side of the state to the other but they travel between both places often) They found out just recently that they are going to get hit with capitol gain for having 2 places of residents.. Umm they really are struggling with having 2 homes but don't want to sell or get hit paying $150,000 a year capital gain.
Is it possible for them to "Gift" one of the homes to me and still live in it as I would not charge rent.. then when they want It sold I sell the property and then transfer the cash back to thier account.. Is this possible?? I have not much of an understanding with tax...
u only get hit with capital gains when u sell the house. the rule is if u lived in the house for 2 of the last 5 years.. you get the exclusion. so for 2 houses, have all your mail transfered to one house then 2 years later switch it to the other house. something along those lines. that way if you sell the house, you won't pay capital gains up to a certain amount. i think it's 500k.
Source(s):
www.alphabgroup.com
If in India, Your parent can have 2 properties in both of their names individually
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