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Tax implications of Quit claim deed

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miller_st Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)	Posted: Mon Jun 11, 2007 1:38 pm    Post subject: Like 0 Dislike 0 Quote: Also what tax implications are there if I do sign a Quit Claim. As you will not be receiving anything for transferring our interest, it will be considered as a gift and applicable gift taxes may have to be paid. Tax implication will depend on the value of the property that is transferred. If this value is more than $12,000, which is the annual gift tax exemption limit then you will have to calculate whether you are crossing your lifetime gift tax exemption limit or not. If you do then gift taxes will have to be paid. Miller
adonis Joined: 22 Oct 2005 Posts: 10267 Location: ALASKA 1046.07 Dollars($)	Posted: Tue Jun 12, 2007 1:23 am    Post subject: Like 0 Dislike 0 Welcome Humbrace, You will get to know about the lifetime gift tax exemption from the page referred by me in the very first post of this page. _________________ Procrastination is the enemy of your financial success
Eric Guest	Posted: Sun Jul 08, 2007 9:35 pm    Post subject: Quit Claim Like 0 Dislike 0 I have a home in CA with a mortgage, my mom came into some money and wants to pay off the loan. Since I am married and things happen, she wants me to quit claim her the property. So my Question is 1. Does she pay off my loan then quick claim it. 2. does the house get reappraised. 3. Is gift taxes involved when I give it to her or vice versa, when she gives it back.
Eric Guest	Posted: Mon Jul 09, 2007 9:57 am    Post subject: Quit Claim Like 0 Dislike 0 I still owe her the balance of the mortgage so do I have to pay capital gains if she pays of the mortgage?
carnahandavid Joined: 21 Dec 2006 Posts: 238 58.41 Dollars($)	Posted: Mon Jul 09, 2007 4:13 pm    Post subject: Like 0 Dislike 0 Quote: Is gift taxes involved when I give it to her or vice versa, when she gives it back. When a person quit claims his property (known as the grantor) for a consideration less than its current value then it is considered as a gift made to the other person. As such grantor has to pay gift taxes if required. And gift taxes become due only when gift tax exemption limits are crossed. The annual gift tax exemption limit is $12,000 which means every year you can gift up to this exemption limit without having to think about gift taxes. But when the value of the gift exceeds this annual limit then it become necessary to calculate whether lifetime gift tax exemption limit which is $1 million has been crossed or not. If has not been crossed then also you don't have to pay any tax even if the value of gift made is more than the annual exemption limit.
Thomas Krens Guest	Posted: Mon Jul 09, 2007 6:12 pm    Post subject: Like 0 Dislike 0 "I still owe her the balance of the mortgage so do I have to pay capital gains if she pays of the mortgage?" Capital gain taxes are to be paid if the house is sold for a profit. But you will not be making any profit by transferring property interest in your mother's name. So you will not have to pay any capital gains tax.
blue Joined: 21 Oct 2005 Posts: 1131 Location: MARYLAND 138.04 Dollars($)	Posted: Mon Jul 09, 2007 6:24 pm    Post subject: Like 0 Dislike 0 Quote: 2. does the house get reappraised. Hi Eric, In California, transfer of property between children & parents is excluded from reappraisal for property tax purposes. But you will have to file an application with the assessor's office. Your application is required to determine if this property transfer would be eligible for the allowed exclusion. Thanks Blue _________________ Lets help each other. Try my blog
Brenda Guest	Posted: Wed Jul 25, 2007 6:04 am    Post subject: rental property Like 0 Dislike 0 my loan officer says it would be easier for me to get a loan for a rental with just my name and then transfer it with a quick deed to my other person that wants to share the rental with me. Can the other person take the interest off their taxes?
miller_st Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)	Posted: Wed Jul 25, 2007 3:27 pm    Post subject: Like 0 Dislike 0 Quote: my loan officer says it would be easier for me to get a loan for a rental with just my name and then transfer it with a quick deed to my other person that wants to share the rental with me. Can the other person take the interest off their taxes? Brenda, the other person can only take the interest off his taxes if he is on the loan. If that person is not named on the loan then he will not be able to claim interest deductions. Miller
ponte123golf@aim.com Guest	Posted: Thu Jul 26, 2007 7:46 am    Post subject: want me name removed from the deed Like 0 Dislike 0 I signed and took out a mortage with my son. Now I want to give him the house. I know I will still be on the mortage but can I take my name of the deed.
Niicss Joined: 03 Oct 2005 Posts: 4772 Location: New Jersey 499.62 Dollars($)	Posted: Thu Jul 26, 2007 6:35 pm    Post subject: Like 0 Dislike 0 Ponte, lender can ask your son to refinance the mortgage in his name as there is be a change in title ownership. You should contact your mortgage company to know if they will allow it or require your son to refinance the mortgage. _________________ Good is the Enemy of Great.
larry Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)	Posted: Tue Aug 14, 2007 10:47 pm    Post subject: Like 0 Dislike 0 Hi Ponte, You can take your name from the deed by using a quitcliam deed. In the deed, you will sign as the grantor and give away the property to your son who will be the grantee. And thus can transfer the ownership rights of property back to your son. But to get out of the mortgage, you need to talk to the lender. And if he agrees to it, your son will be able to refinance the loan in his name solely.
Mike and Barb Guest	Posted: Tue Aug 21, 2007 7:24 pm    Post subject: Quit Claim or Purchase Like 0 Dislike 0 I'm looking to purchase a home from my parents that is completely paid for. They only desire to get back what they purchased it for, not what it is currently valued at. Is there any benefit to them to transfer their interest through a quit claim deed, rather than do a normal purchase of the property? Thanks!
larry Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)	Posted: Tue Aug 21, 2007 11:48 pm    Post subject: Like 0 Dislike 0 Hi Mark and Barb, I think you have asked a similar question earlier in the forum. There I've replied to you. To view the reply, please refer to: http://www.mortgagefit.com/property/quitclaim-purchase.html
elssy Guest	Posted: Tue Sep 04, 2007 11:23 am    Post subject: foreclosure Like 0 Dislike 0 cant a qit claim deed stop a foreclosure on my property at least for a month until I get de payments together?

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