Posted: Mon Dec 24, 2007 5:26 pm Post subject: tax liability on a Quit Claim Deed
In the state of Calif, are there tax liabilities to a "Quit claim deed" once it has been signed?? The home in question has no mortgage. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
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.
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 .
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. _________________ Procrastination is the enemy of your financial sucess
Posted: Mon Aug 04, 2008 1:37 am Post subject: adding to a deed
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.
Posted: Mon Aug 04, 2008 5:29 am Post subject: RE: adding name to deed
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.
larry
