Minnesota house title transfer within family

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slbnoob
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Joined: Thu Jul 25, 2013 1:31 pm

Minnesota house title transfer within family

Post by slbnoob » Thu Oct 05, 2017 12:49 pm

I have searched a while but still can't a definite answer to: How to transfer ownership of house from aged parents to oneself in the state of MN? Aged parents live in and will continue to live in the house which is already paid off. I will ostensibly pay for some maintenance and property taxes. Can I deduct those property taxes on my income?
Could somebody point me in the right direction? Thanks.

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dm200
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Location: Washington DC area

Re: Minnesota house title transfer within family

Post by dm200 » Thu Oct 05, 2017 1:30 pm

slbnoob wrote:
Thu Oct 05, 2017 12:49 pm
I have searched a while but still can't a definite answer to: How to transfer ownership of house from aged parents to oneself in the state of MN? Aged parents live in and will continue to live in the house which is already paid off. I will ostensibly pay for some maintenance and property taxes. Can I deduct those property taxes on my income?
Could somebody point me in the right direction? Thanks.
Whatever the state, in my opinion, this should only be done with the advice and cousel of an attorney to make sure there there are no unintended consequences or disadvantages.

Why are you/they doing this?

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F150HD
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Joined: Fri Sep 18, 2015 7:49 pm

Re: Minnesota house title transfer within family

Post by F150HD » Thu Oct 05, 2017 1:32 pm

slbnoob wrote:
Thu Oct 05, 2017 12:49 pm
I have searched a while but still can't a definite answer to: How to transfer ownership of house from aged parents to oneself in the state of MN? Aged parents live in and will continue to live in the house which is already paid off. I will ostensibly pay for some maintenance and property taxes. Can I deduct those property taxes on my income?
Could somebody point me in the right direction? Thanks.
Maybe of use?

https://store.nolo.com/products/minneso ... pr213.html

Sandi_k
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Location: SF Bay Area

Re: Minnesota house title transfer within family

Post by Sandi_k » Fri Oct 06, 2017 3:49 pm

BEFORE you do this, you need to answer some questions:

1) How much did they buy the house for?
2) How much have they spent over the years to improve it?

3) What is its current market value?

4) Do you have siblings? Will they be upset if title is titled to you?

You should know from a tax perspective, it's much more financially prudent to INHERIT the house, instead of your parents adding you to the title while they're still alive.

The way it works: Add up 1&2 above. This is the "cost basis" of the house. Subtract 1&2 from three. This is potentially the TAXABLE GAINS that you'd be required to pay taxes on, for the tax year when the change in ownership happened.

If you inherit the house, no capital gains taxes are typically due - that's called a stepped-up basis. If you were to sell it after inheriting it, you'd most likely have -0- tax due.

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