Author Topic: Buying sibling's half of inherited house  (Read 863 times)

Purplecow

  • Newbie
  • *
  • Posts: 1
    • View Profile
Buying sibling's half of inherited house
« on: November 18, 2019, 09:16:42 PM »
My brother and I just inherited our mom's house.  The house was held in a trust with my brother & I as equal beneficiaries.  My brother doesn't want the house and has agreed to let me buy him out.  We've agreed on the amount I would pay him.  I was originally thinking I would give him the agreed amount of money from mom's bank account and he would quit claim the house to me.  We would then split the remaining money as we were going to do already.  The title attorney said we would have to do a deed to distribute the home to us equally as per the trust and then do a deed of gift from him to me for his half.  I'm concerned how a "gift" would impact my taxes and don't quite understand why it would be a gift if he received cash in exchange for his share.  IF a deed of gift is done I would have to show that on my taxes as a gift, right?  Now I'm thinking it might be a better idea if we made a sales contract and I pay him from my own money but don't know what that would look like on taxes given that half of the house would be an inheritance and half would be a purchase.  Any insight on the best way to do this would be appreciated.