Selling Family Home: Tax Traps & Better Options

A mother contemplates selling her family home to her daughter at a discount, but financial expert Quentin Fottrell warns of potential tax pitfalls. Selling below market value triggers Form seven-oh-nine, reporting the gift. The step-up in basis tax break is lost, potentially leading to significant capital gains tax. Experts advise against this, suggesting smarter options like mortgage co-ownership or waiting for inheritance to preserve tax benefits and options.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.