Taxes on sale of interest in property

Submitted by Scott Lojewski on Wed, 2018-10-17 17:50

If I am on a deed with another person (not living there) as rights of survivorship and sell my interest to another person is that money taxable and if so can I put it in IRA to avoid taxes as I am retired. Thanks



Submitted by Alan - IRA critic on Thu, 2018-10-18 00:02

You have a potential capital gain to report, but this property was not in an IRA and therefore you cannot roll it over to an IRA, nor can you make a regular IRA contribution because this is not earned income, it is investment income.

Submitted by Scott Lojewski on Thu, 2018-10-18 18:20

I did not buy the property someone put me on the deed and now wants me off dose that still apply

Submitted by Pamela Niven on Sat, 2018-10-20 23:40

Dear Mr. Slott,   In August 2018, my mother, age 86, died. She named me sole beneficiary on her tradtional IRA. In the late 1990’s, my parents created The Niven Marital Trust. Upon the death of my father, Dec. 2014, the IRA was inherited by my mother and retitled as, The Niven Marital Trust Bene IRA Benjamin F. Niven(dec) WFCS as Custodian. I have just read your book, Parlay Your IRA into a Family Fortune, and work in financial services. The IRA is held in an investment account with Wells Fargo Advisors. My understanding is that the IRA qualifies for the stretch benefit. I want to make sure that the IRA is property retitled for the stretch distributions and that the 2018 RMD is done correctly. I have been told that the RMD for 2018, has not been taken. Wells Fargo has yet to give me any information or documents to retitle the IRA and they are questioning the IRA as belonging to the trust. From what you have written, it seems to me that the Beneficiary Form would override the trust assets for this IRA. Please advise as the calendar year is coming to an end and this process is not moving forward. Best regards,Pamela [email protected] Raymond Bostian of Salisbury NC, IRA seminar in June 2018,

Submitted by Alan - IRA critic on Sun, 2018-10-21 02:50

  • Note that this should have been a new post as it is not related in any way to the original post.
  • Your mother inherited Dad’s IRA, and apparently did not roll it over to her own IRA, but kept it in inherited status.  However, if she failed to complete her full beneficiary RMD for 2015, 2016 or 2017, then she is deemed to have defaulted to ownership status of the IRA. Therefore, you need to determine if her correct beneficiary RMDs were distributed in those years in order to know if she was treated as the owner of the IRA at the time of her death, or the beneficiary. If she is treated as the beneficiary, then HER OWN beneficiaries after her death do not get a new stretch. They must continue the RMD schedule mother would have used by reducing her 2018 RMD divisor by 1.0 for 2019 and each year thereafter.
  • It sounds like you named as the sole beneficiary at one point on your mother’s inherited IRA, but she changed the beneficiary to the trust. Is that right?  If so, the trust inherits her already inherited IRA, but since the trust would be a successor beneficiary, the RMDS would be as described. Distributions would be paid to the trust and then be either accumulated in the trust or passed through thet trust to the trust beneficiaries on a Form K 1. The trust beneficiaries would then report the K 1 income on their individual tax returns.
  • As you can see, determining the current status depends on what happened as far back as your Dad’s death. This may be why Wells is taking some time. 
  • If you can clarify this further, please advise.

 

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