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tax liability on a Quit Claim Deed

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Riehmteam,

Welcome to the forum.

The person may have to pay gift tax but in the state of California, a person may make of $ 10000 without incurring a federal gift tax.

Thanks,
Larry

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blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Welcome to Mortgagefit discussion board.

You need not to pay any tax. In state of California you need not to pay federal gift tax for transfer of property.

Do let me know if you have any other questions.

Thanks
Blue

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Blue, I think you are mistaken. You have to file federal gift tax returns even in California if the gift exceeds the annual gift tax exemption limit. You are not required to pay the tax if you do not cross the lifetime gift exemption limit of $ 1 million but you have to file the gift tax returns.

Larry, as far as I know, the annual gift tax exemption limit per person is $ 12,000 and not $ 10,000.

Riehmteam, the grantor might have to pay gift tax if he has already exceeded the lifetime exemption.

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larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jenkin,

Merry Christmas :)

The regulations of gift tax are very complicated. You are right that the annual gift tax exemption limit per person is $ 12,000. But the law varies from state to state and if I am not wrong, in the state of California, the annual gift tax exemption limit per person is most probably $ 10,000.

Feel free to ask if you have any further questions or doubts or suggestions :).

Best of luck,
Larry

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Well Larry, the gift tax exemption limit is currently $12,000 and it will remain so even in 2008. However, the limit was earlier $10,000.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am taking care of my folks now and they want to add me to their deed on a paid off California property that we are all sharing. Does this change things as they are just adding my name to the deed and not signing over the property? I am worried about being hit by taxes at the end of the year.
RM.

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Richard,

Welcome to the forums.

Since the guys have added you to the deed, therefore you have a share in the property and hence they may ask you to pay a part of the property taxes too. But they'll have to inform the County Tax Collector about it so that the records show your name as the taxpayer along with that of others.

Take Care

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My boyfriend wants to add me to the deed of his house while keeping himself on it as well. I live is Washington state and found out through my counties recorders office, I am required to pay a tax on 50% of the mortgage amount which is 1.78% adding up to almost $3,000!! Is there a way to avoid this tax without my boyfriend having to pay it for me as a gift?

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Teague,

It's true that you need to pay taxes on quitclaiming a piece of property as a gift. But there are certain exemptions which you can avail of. If the part of the property he's quitclaiming is worth less than $12,000 (per year per person gift limit), you needn't pay any gift taxes. And even if it exceeds $12,000 limit you can apply for a consideration of the excess amount of gift as a part of the $1 million lifetime gift exemption limit. For a similar discussion you can refer to the following page:
http://www.mortgagefit.com/discuss/quitclaim-taximplications.html#3127

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The 1.78 % tax is the Washington real estate excise tax and I would tend to believe that what the county told you is correct.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My parents andded my husband and I to the deed of a rental property. We now want to [url=http://www.mortgagefit.com/quitclaim-deed.html]quit deed[/url] my parents OFF of the deed. Is this possible? Will I inquire gift taxes? Should I just [url=http://www.mortgagefit.com/refinance.html]refinance[/url]? Im so confused!!

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lene!

Welcome to forums!

Your parents will have to sign a quitclaim deed in your name to transfer the property to you. If the property is transferred to you, then your parents may have to pay gift taxes. Once the property is solely transferred in your name, you can then refinance the mortgage. However, in order to refinance it, you should have a good credit score and income.

Feel free to ask if you have further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

is there a tax you have to paid on a quitclaim? if so who paids it.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi SUZANNE!

Welcome to the forums!

While transferring the property through a quitclaim deed, one has to pay stamp doc fees and registration fees. The grantor and the grantee can negotiate and decide who would pay it.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If my boyfriends ex wife wont quick claim the house can he still refinance

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Attitude!

Welcome to forums!

Yes, your boyfriend can still [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the mortgage in his name. But you should note that if he refinances the mortgage, his ex-wife will still have ownership rights on the property.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We want to buy out my husband's brother as they are tenants in common on CA property that is paid free and clear and we pay very low taxes - will the quitclaim affect our CA property taxes?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi sherry!

Your query has been answered in the given page:
http://www.mortgagefit.com/california/remove-title.html#141536

Take a look at it. I hope it will help you.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i want to give my son rental property through a [url=http://www.mortgagefit.com/quitclaim-deed.html]quit claim deed[/url]. is there a gift tax on it and how much on $150,000.
thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if i sell rental property that is paid for can i pay off another rental property with the money without paying any taxes.
thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

There is an exemption for Washington State excise tax for the transfer of real property if there was no consideration given i.e. the property was transferred as a gift.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I live in California. I'm separated and my still husband wants me to sign a quitclaim deed in his favor. He is trying to modify the loan. will I have to pay taxes for that? will my financial resposabiltiy end with a quit claim deed?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Your financial responsibility toward the mortgage will not get over even though you sign the quitclaim deed. It will only remove you from the property deed.

Thanks

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