Tax implication of Quit Claim Deed

Caron · Posted: Thu Aug 31, 2006 9:21 pm Post subject: RE: How to refinance

Hi Guest,

You should talk to the lender if you want to take a refinance loan from him. Or else, you may shop for a better deal with different lenders and then choose the right person for your loan.

To know how to refinance, visit our section on this topic.

Feel free to come up with further queries.

Thanks,

Caron.

Guest 0.10 Dollars($)

I quitclaim deed a house to my brother in 2004 after I bought but the mtg was still on my name , now is actually buying it from me for more $$$. After the settlement will I be responsible for cap gain tax or he will
Please help

Guest 0.10 Dollars($)

Hi,

Your question has been answered on this page, have a look :
http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption

thanks
henry

Guest 0.10 Dollars($)

I am in the middle of a pending divorce and it is my hope to keep the house. My husband tells me we can not sell now because we have only been in our home for 10 months and if I refinanced it would be considered a sale. I want to know if he quit claimed the house to me would all taxes apply at the time I would refinance or sell or would they be in effect at the time the quit claim deed was issued to me?

Guest 0.10 Dollars($)

Hi,

There are two types of taxes involved, capital gain and gift taxes.

Capital gain taxes are calculated at the time of sale of the property and the gift taxes if any are calculated when the quit claim is done.

jameshogg · Posted: Fri Sep 08, 2006 5:58 pm Post subject:

Hi Byron,

At the time of quit claim you will be required to consider whether the gift taxes would be applicable for you or not. There is an exemption limit for gift taxes fixed per year per person (to whom the gift is donated). The limit is $12,000 for 2006.

And when the property is sold the capital gain taxes are to be calculated with an exemption limit of up to $250,000 ($500,000 for married couple) in profit from the sale for a single owner if he has used the house as a primary residence for at least two years of the preceeding five years before the house is sold.

Thanks
James

Guest 0.10 Dollars($)

Hi,

You will find good information here, http://www.mortgagefit.com/discuss/quitclaim-taximplications.html . A few months earlier, I visited this site and found this information very useful

hope it also helps you

Guest 0.10 Dollars($)

My uncle and father (brothers) bought a house together and each own 50 %. My father has a Family Trust and placed his 50% ownership into his trust. My uncle recenlty quit claimed his 50% into my father's family trust. Would my father (and mother who is name also is on the family trust) have a tax reassessment for the 50% quit claimed to him by my uncle. What tax implcation will my uncle incur. Father has not yet filed the quit claim deed with the county.

T.

Caron · Posted: Sun Sep 17, 2006 10:03 pm Post subject: RE: Filing for tax reassessment

Hi Timothy,

A quit claim deed is not taken to be valid if it is not filed with the county.

Your father cannot legally have a tax reassessment done on your property, as the quit claim deed isn't filed yet with the county.

It is better to file the deed as early as possible, so that your father can request for the reassessment.

Thanks,

Caron.

Guest 0.10 Dollars($)

Caron,
would the 50% that was quit claimed to dad be reassessed at current market value? and would uncle need to file a 709 or 706 form on his federal income taxes?

What if uncle dies before the quit claim is filed?
Timothy

Guest 0.10 Dollars($)

Hi Timothy,

If uncle dies before the quit claim is filed then it will not be considered as a valid legal document.

Guest 0.10 Dollars($)

Hi,

The reassessment does not occur if the transfer into the family trust is made by one who is a trustee.

Since uncle is not in the trust the reassessment might take place. You should get in touch with the County Tax Assessor for more details.

Caron · Posted: Mon Sep 18, 2006 10:23 pm Post subject: RE: Quit claim and reassessment

Hi Timothy,

Guest 0.10 Dollars($)

Thank you Caron, Caymmi & Clark!

I called the county assessor and indeed the 50% will be reassessed for current tax year once the quit claim is recorded.

Lastly is it best to contact the mortage lender prior to recording the quit claim? What scenarios can play out in notifying or not?

Timothy

Caron

Hi Timothy,

Welcome back.

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