Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

Posts: 1
Registered: ‎03-02-2018

Capitol Gain Taxes on a Gifted Home

My parents purchased my home in 2011, I immediately moved in and claimed it as my permanent residence.  I wrote monthly checks in an effort to payback my debt but the checks were never endorsed.  In 2014, they gifted me the home.  Throughout the years, I have spend thousands on upgrades and typical maintenance and now the homes value has increased $74k.  I recently married and we are looking to sell my current home and upgrade to a larger more functional space.  Will I have to pay capitol gains on the $74k difference upon the sale of my gifted home?  And would the profit from the sale have to all be placed into a marital home or can I set some aside in an emergency fund without consequence?

Associate (Pioneer)
Posts: 3
Registered: ‎02-20-2018

Re: Capitol Gain Taxes on a Gifted Home

Since you are married, you can exclude up to $500,000 in capital gains on your home. So the $74K is not taxable and you can do whatever you want with the money. There are no restrictions.