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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Do you own the house in which you and your husband reside or do you rent?
I am sorry to have to tell you that you will have to pay Capital Gains Tax (CGT) on the gain made on house you are selling. You have an Annual Exempt Amount (AEA) of 11.3K to offset this gain. It will be taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of disposal.
I am so sorry to have to rain on your parade. Had you originally put it in their names then this taxation would have been avoided. You could have protected your position by putting a charge of the premises.
No, but it would have made the trust liable, the AEA would be reduced so that makes the answer the accounting equivalent of a lemon.
I had, some time ago, a case where parents had bought their son a house to live in at Uni and he stayed there for years thereafter. The eventual tax bill on sale for the parents was 35K, ouch!
With my first wife we both wanted a daughter and got one first time so stuck at one offspring. She now is a Doctor of Engineering and works for the New Zealand Government. Both my ex and I wonder how we ever produced such a prodigy.
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