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ERA Justin Realty Report: Gifting The Family Home
“If you are getting ready to move out of your longtime home and into more sunshine, you can actually gift your home to a child or friend but that gift will come with a few strings attached. In the United States, estate taxes, home values, job transfers, and the desire for a separate space and different environment have changed the use of the traditional family home. The bottom line is that the home has evolved from basic shelter to the average person’s most valuable possession. It needs to be carefully protected, guarded, and even nursed along–much like the responsibilities that took place within the home itself. And the financial value is usually accompanied by priceless memories and experiences, making the family home beyond doubt the ultimate asset.” This is information brought forth by author Tom Kelly in his book “Real Estate for Boomers and Beyond,” reported ERA Justin Realtor agent Catherine Nimmo. The firm has consistently been awarded for their commitment to excellence from approximately 30,000 ERA brokers and agents.
Catherine stated, “First and foremost, your child or friend’s basis in the house will be what you paid for the property, plus major improvements. Because this cost you paid years ago may be lower than today’s home value, there’s a chance tax will be owed on a subsequent sale. Carefully note that tax laws change and everyone should review their specific situation with their tax advisor for the most current laws and tax information.”
Kelly’s book continued, “The adjusted basis is the original cost plus capital improvements. Capital improvements are the cost of improvements having a useful life for a period of time. Examples include the new roof, dock, deck, remodeled bathroom, kitchen and finished basement. Generally, an expense is a capital improvement if it adds value to the property or extends its useful life. If these criteria are not met and the expenditure is considered necessary to maintain current usefulness, it is a maintenance cost.
Catherine concluded, “Tax regulations do change, so take the time to check with your tax attorney or your accountant before making any moves. Be certain that goals are shared and discussed. You’ll find it saves time, money and anxiety.”
ERA Justin Realty proudly continues to receive the ERA Commitment to Excellence Award, from approximately 30,000 ERA real estate brokers and agents. For these reasons ERA Justin Realty should be your buying and selling Realtor of choice.
All of the ERA Justin Realty listing and sales professionals can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue, by office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also view 1000’s of homes at their websites www.ERAJustin.com, www.ERAJustinRealty.com and www.SellBergenCounty.com
