Selling Lady Bird Deed Property

Summary

A Lady Bird Deed in Texas allows the owner to sell or gift the property while retaining rights to use it. Selling the property may involve closing costs such as real estate agent commissions, title insurance, property taxes, and transfer taxes. Capital gains tax is federally levied, and exclusions apply if the home was the primary residence for at least 2 of the last 5 years. If not, the full gain may be taxable. For those below the poverty line, the long-term capital gains tax rate can be 0%, depending on total taxable income. Consult local real estate and tax professionals for precise advice.

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Would we have to pay back taxes if he sold it
In Texas, selling a property doesn't generally trigger a requirement to pay back taxes, unless there are outstanding property taxes on the house. However, the income from the sale may be subject to capital gains tax. Consult a local tax professional for advice.
Would there be any sort of fees associated with him selling the property?
Yes, generally, there will be closing costs associated with selling property. These could include:
- Real estate agent commissions
- Title insurance
- Property taxes
- Transfer taxes
However, the specifics can vary based on your location and circumstances. Please consult a local real estate professional for exact details.
How much would the capital gains tax be on this for a $*,* house?
In Texas, capital gains tax is not levied by the state but by the federal government. If the home has been his primary residence for at least * of the last 5 years, he can exclude up to $*,* of gain. Anything over this could be taxed at *%, *%, or *% depending on his income. Consult a tax professional for precise calculations.
What if that has not been his primary residence for two years
If the house hasn't been his primary residence for at least * of the last 5 years, he may not qualify for the $*,* exclusion on capital gains tax. This means the full amount of gain could be taxable. Consult a tax professional for further advice.
What is the capital gains tax rate for someone below the poverty line
For someone below the poverty line, the long-term capital gains tax rate can be *%. It depends on the person's total taxable income. However, specific conditions may apply, and it's advisable to consult a tax professional for accurate information.