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Caron

Hi Tishmona,

If your father simply transfers the title to the property to his children, then he may have to pay for the gift taxes. The children need not pay. And, if your father may get an exemption on gift taxes for a property worth $12,000, the exemption limit for 2006. For more details, refer to a previous discussion on Gift tax exemption .

Thanks,

Caron.

Guest

What happens if you filed a summons with the court to have your home sold. How long is the process?

sara

Hi Mia,

I guess you are talking about partition lawsuit.

Well, after you have filed a summons with the court to have your home sold, the court will probably allow for a 30 day time period to resolve differences between you and the co-owner. If you are not able to come up with any kind of solution, then the court orders a forced sale of the property.

To know more about Partition Lawsuit, go through our previous discussions.

Thanks,

Sara

Guest

I am considering purchasing a home from my father which he owns outright. I have heard alot about Quit Claim deeds. How would this benefit both of us as opposed to going through the traditional way of obtaining a mortgage broker and so forth.............

helping_user

Hi Mikeco,

As far as I know, you cannot buy a home with quit claim deed. You can directly get ownership rights on the property if your father signs over a quit claim deed to you. But this will depend upon your father as to whether he is willing to give away the property without being offered a suitable price for it.

Thanks

Guest

My brother and I have title on the house; I make mortgage payment, property taxes on the house. My brother is out of the country doing business and owed credit card debts. His business is not doing well, he does not have any income now. Can he file for chapter 13 ? what are the consequences on the property that we both own after he file chapter 13, will the judge ask him to sell part of the house to pay for the debts ? Can he quit claim deeds the house to me and file chapter 13 right away or he has to wait 2 years ? Thank-you.

Guest

In chapter 13, the house will not get sold for meeting his debts. There will be a payment plan according to which he will have to make payments.

Benjamin

Guest

How can he make payment if he does not have any income and he intend to live out of the country (he will only come back to US for visit). Should he quit claim the house to me ? would it make sense to do that ? Thanks.

Guest

Well, if he quit claims the house to you it may be considered a fraudulent transfer. As it will be a transfer within 1 year of filing for bankruptcy without receiving a fair value for such transfer. And can be canceled by the bankruptcy trustee.

If he is not in a position pay anything then chapter 7 will be the option. As the home is jointly held, his share of interest in the home from the sale will be calculated for payment to his creditors.

But let me tell you it is better to avoid bankruptcy as it has very negative affect on one's credit profile. Rather consult any debt consolidation or settlement organization to figure out a way to come out of the debt burden.

Benjamin

Guest

Thanks for the answers.... can I buy him out of the property by paying off his debts (ie: his credit cards debts is 50K, I will pay off this 50K and take him out of the title of the house) what are the tax consequences on this ? Thanks again.

Guest

sara

Hi Guest,

To keep creditors away from selling off your brother's assets probably the home also, you can pay off his debts instead of asking him to file Chapter 7. And, ask him to quit claim the house to you. I am saying this because if in future he is in debts again, you may have the fear of losing the home as he is not able to live up to the payments.

Thanks,

Sara

Caron

Hi Guest,

Guest

My wife and I own a home that my daughter currently resides in. I want to Quit calim the title to her but keep the mortgage obligation for now.
1. Will there be any current tax implication on the value in excess of the annual limit of $12,000?
2. Will the real estate tax base change as a result?
3. When sold, will the base price be the fair value at the time of the quit claim or willit be the initial price I paid for the house?

sara

Hi Toma,

Welcome to the forums.

If you quit claim the property to your daughter, it is regarded as gift. So, you will require paying gift taxes on an amount exceeding the exclusion limit of $12,000 provided the lifetime gift tax exemption limit ($100,000) is not exceeded.

The tax base after the quit claim will depend upon the current property value. Now, if you sell the property just after the quit claim, then the tax base for capital gains tax will be the fair market value of the property at the time of quit claim.

Thanks,

Sara

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Tax implications of Quit claim deed