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 patkil
Joined: 23 Jun 2009
Posts: 3
2.19 Dollars($)
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 Posted: Wed Sep 23, 2009 9:17 pm Post subject: Tax Implications |
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Quit Claim Tax implications.
My partner and I bought a house in CA for 250K, the value of the house now is 150k. I would like to quit claim and remove my name from owner ship.
Are there any taxes that I owe other than the prop tax, the loan is in my partners name.
Since it is a loss are there any gift tax involved?
Will I be able to deduct the loses from this prop...I have been carrying over the yearly loss as deductions/depreciation? |
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Niicss
Joined: 03 Oct 2005
Posts: 2617
Location: New Jersey
409.01 Dollars($)
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| Posted: Thu Sep 24, 2009 3:50 am Post subject: |
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Though you quitclaim and remove your name from the property deed, you won't be liable for taxes. If you transfer the property as a gift to your partner, then you would be liable for gift taxes. However, there are some exemptions in case of gift taxes. To know about it, check out the given page:
http://www.mortgagefit.com/gift.html#111114
_________________
Good is the Enemy of Great. |
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patkil
Joined: 23 Jun 2009
Posts: 3
2.19 Dollars($)
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| Posted: Thu Sep 24, 2009 7:13 am Post subject: |
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| Thanks, in the above case the property value is less than the mortgage on the prop, so it has a loss rather than a gain. In terms of gift tax this will a -ve how does the taxes work out. |
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lovegreg77
Joined: 03 Sep 2009
Posts: 34
0.00 Dollars($)
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| Posted: Thu Sep 24, 2009 10:53 am Post subject: |
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| if you will be doing a quit claim deed in name of your friend, he will be gaining 25K & therefore may be asked to pay capital gain tax. apart from that he has to pay property tax as a single owner of property |
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Guest
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| Posted: Thu Sep 24, 2009 11:07 am Post subject: |
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| In this case their is no gain. We are not doing any financial transactions. |
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