Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sell the house. Split the proceeds. Move somewhere else.

Agreed that this is the least messy solution.

However who pays the capital gains tax on the house?

Maybe that's why the parents want you to move in and take over the property so they don't have to fork over 50%. Be wary

This doesn't make any sense. The capital gains tax for an investment property is either 15 or 23.8%, depending on their income.

The tax implications are more around GIFT tax implications. If they give the house to the kids, it creates a gift tax issue. May not result in taxes owed, but forms will have to be filed.

If fiancee lives in house and owns it (is on title) then the $250,000/$500,000 exclusion would kick in when they sell.

Interesting. In VA? Our family has had 49% capital gains taxes in another state.

Something smells in Denmark.

Anonymous wrote:OP here, that's what I was thinking at first but his family is really not like that so I think it'll be ok. Think...

No, it won't be ok. Anything can happen and you would be screwed. Don't be naïve.

Anonymous wrote:

Anonymous wrote:Sell the house. Split the proceeds. Move somewhere else.

Agreed that this is the least messy solution.

However who pays the capital gains tax on the house?

Maybe that's why the parents want you to move in and take over the property so they don't have to fork over 50%. Be wary

This doesn't make any sense. The capital gains tax for an investment property is either 15 or 23.8%, depending on their income.

The tax implications are more around GIFT tax implications. If they give the house to the kids, it creates a gift tax issue. May not result in taxes owed, but forms will have to be filed.

If fiancee lives in house and owns it (is on title) then the $250,000/$500,000 exclusion would kick in when they sell.

Anonymous wrote:Sell the house. Split the proceeds. Move somewhere else.

Agreed that this is the least messy solution.

However who pays the capital gains tax on the house?

Maybe that's why the parents want you to move in and take over the property so they don't have to fork over 50%. Be wary

Before you take over the home & mortgage I would have your husband communicate over email to his sister and parents exactly what was communicated to him regarding the arrangement. That way everyone is clear upfront and if there are any objections the two of you can gracefully bow out if need be.

From an outside perspective, his parents explanation makes no sense. If this were an investment property for the kids then the idea is for the kids to split the profit, not principal amount. If you take over the mortgage payments to his parents and not on the house then you will have a mess on your hands. If they transfer the deed you have to pay taxes on the gift. It doesn't sound like a well-thought out plan. I would ask a real estate attorney.

I hope there's a CPA involved. This sounds like a tax disaster waiting to happen.

Sell the house. Split the proceeds. Move somewhere else.

I would have your fiancé talk to his parents and sister so that they can work out an arrangement that they think is fair. Once they figure that out he should get a lawyer to draw up an agreement memorializing the agreement for everyone's signature.

You need to get everything in writhing before you put any money down. What happens if the sister doesn't want to sell in 5 years, what happens is your new spouse dies or you end up divorced in 4 years? It's a LOT of risk not to have anything in writing.

im confused
are you and fiancé going to be on the title? is sister on the title?
this is messy
you don't want your income going towards a house you are not on the title of

Anonymous wrote:OP here, that's what I was thinking at first but his family is really not like that so I think it'll be ok. Think...

I hope so. I truly do wish you the best. Sorry I do not have anymore advice.

OP here, that's what I was thinking at first but his family is really not like that so I think it'll be ok. Think...

I would not get involved. This is going to be a mess when the time comes. Good luck.

Fiance's parents bought an investment home for him and his sister and fiance currently lives in the home. The house is on a 15 year mortgage that fiance's parent's pay for and about 70% of it is paid off (they paid more every month). And before people say that it's unfair that he lives in that home for free right now, so she should get more...his parents put a hefty down payment on the house she currently lives in so all is fair.

Fiance's parents said that after we get married that I could move in there but we would have to pay for the remainder of the mortgage, and pay out his sister 1/2 the money that they put into the house once we sell (which we will in 5 years or so). How do we figure out the right amount to pay her once we sell? Fiance's parents said that we should not take into consideration how much more the house will sell for in 5 years since we'll be the ones taking care of the house, paying hoa fees, anything that needs to be fixed, etc. Do we just give her 1/2 of the principal that's been paid off?

Any help/advice will be greatly appreciated! Thanks all!