{"id":8158,"date":"2022-06-03T13:09:26","date_gmt":"2022-06-03T17:09:26","guid":{"rendered":"https:\/\/www.realtyhop.com\/blog\/?p=8158"},"modified":"2022-06-03T13:12:58","modified_gmt":"2022-06-03T17:12:58","slug":"capital-gains-on-gifted-property","status":"publish","type":"post","link":"https:\/\/www.realtyhop.com\/blog\/capital-gains-on-gifted-property\/","title":{"rendered":"Capital Gains on Selling Gifted Property"},"content":{"rendered":"
As people get older, it is not uncommon to gift their homes to their children or other family members. While the kind gesture is sure to be appreciated, there are some tax implications for the gift recipient.<\/span><\/p>\n If they decide to sell the gifted property, they will generally be responsible for paying capital gains tax on the proceeds. Many people are not prepared for this, and the amounts can be substantial in some cases.<\/span><\/p>\n As a result, when selling gifted property, it is crucial to be aware of the tax implications and do your calculations beforehand. Read on to learn more about capital gains on gifted property, how they work, and what to expect.<\/span><\/p>\n Before diving too deep, let’s take a closer look at capital gains tax in general. Capital gains tax is a tax on the profit realized when an asset is sold. In other words, you won’t be responsible for any capital gains taxes if you hold onto the asset, even if the value goes up during the period. If, however, you decide to sell, you will have to pay taxes on the gains.<\/span><\/p>\n Capital gains are often realized when you sell stocks or bonds for a profit, but it also applies to the sale of property, precious metals, and more. Depending on your income, rates for the capital gains tax are 0%, 15%, or 20%.<\/span><\/p>\n In 2022, if you earn less than $41,675, you will not have to pay capital gains tax. If you make more than that, you will have to pay capital gains tax based on the 15% rate. But if you earn more than $459,750, the capital gains tax will increase to 20%. The table below highlights the capital gains tax rates for the year 2022.<\/span><\/p>\nWhat is Capital Gains Tax?<\/span><\/h2>\n
Long-Term Capital Gains Tax Rates<\/strong><\/h3>\n