Work in NY and Sold Land in PA

[techie353]

I have a vacation home not sold yet in PA, transferred into my name however, I would like to transfer it back to my retired parents as it is theirs. If sold in their name then they are likely paying less capital gains tax.

I work in NY and assume if it is kept in my name I would pay more in capital gains tax. Can anyone confirm if this is true? And for selling a home in PA, will I be paying only NY capital gains and not PA capital gains? How does this work? And if it happens to sell in my name, will capital losses from stocks be used to offset capital gains selling a home? What is the capital gains tax rate (for selling home)?

[Critter-3]

Basically if you sell a property in PA  and you live in another state then you will pay taxes on the PA sale to PA  AND  the resident state will also tax you on the sale HOWEVER the resident state will give you a credit for the taxes paid to PA so you are not double taxed.  

As for the "transferring" of the title back and forth ... you and your parents will both need to file gift tax returns to report the gifting.  

[NCperson]

@techie353 - you may also want to get the advise from a local tax attorney.  I gotta believe NYS would frown upon transactions set up to avoid state tax.  

is there a mortgage on the property?  you won't be able to transfer title as the bank is quite unlikely to approve it as the lien holder.  

and yes, if sold in your name, you can net the capital gain against stock losses (or the carryforwards). 

the capital gains rate on the sale of the home is no different from the stocks - for most that is 15% federal tax.  since it is not your primary home, you are not eligible for the $250,000 / $500,000 tax exclusion.