Tax implications of Quit claim deed

Guest

Hello,
My issue is I am in the process of buying a waterfront home and the actual piece of waterfront property is not deeded to the home. The two previous owners have quit claimed the property to the new owers of the home. My lawyers say that isn't good enough they want the 50x80 foot of waterfront added to the deed for the home. So should I settle for the qiut claim or should I fight to get a clear title on the waterfront property. There doesn't seem to be any rightful owner of the property and the current owner has been paying tax on the waterfrontage for 20 years.
Thanks for any help
Bill

jenkin7 · Posted: Fri Nov 30, 2007 6:09 am Post subject:

Hello Bill,

I think it will be better if you obtain a clear title with the 50x80 added to the deed. That will help you in any future transactions.

Guest

I am a single mother who has lived with her boyfriend and mother for 2 years. The mortgage was put into my name 2 years ago and is now in forclosure. I have recently moved out and want to file chapter 7. My boyfriend and mother are still living in the home and are desperate to keep it. He has asked me to quit claim the property to him so he may file chapter 13 to save the house. Is this legal and what effects can it have on me?

jenkin7 · Posted: Mon Dec 17, 2007 2:58 am Post subject:

Hello Carrie,

If you want to transfer ownership rights of your property before filing bankruptcy in order to save the property, that might be considered as a fraudulent conveyance.

I think it will be better if you consult an attorney and take his advice.

If you are on the mortgage, signing a quit claim deed will not release you from the financial obligations. You shall still remain responsible for the loan.

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi Carrie,

Welcome to the forum.

Jenkin has given you sound info. If you quitclaim the property now before filing BK, it may be considered as a fraudulent act and even after transferring the property your financial obligations will not be removed. So can your boyfriend or your mother refinance the mortgage to remove your name? If not then you should not quitclaim the property to them.

Consulting with an attorney regarding this is a good idea.

Best of luck
Happy Holidays

Guest

Nice site. Very useful contents. I've been looking for information for a long time, and I've found it exactly here. Thank you

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi Gigir Barabanovd,

Welcome to the forums and thanks for the appreciation.

As a community we always try to help people. So if you like this community I hope you also join this community and help people with your valuable information and suggestions.

Feel free to ask the community if you have any questions.

Best of luck,
Larry

Guest

What a good site! I think it wasnt easy to post here so much information. Thank you, I will add it to my bookmarks

blue · Posted: Thu Dec 27, 2007 2:08 pm Post subject:

Hello Gigir Barabanovd,

Welcome to Mortgagefit discussion board.

That is really great that people like this community. If you really like this community, you can join this community and try to help people out by with different financial queries. As a community our endeavor is to help people and if we can do that, that is our greatest achievement.

Just join and be a member of the community. Hope you will enjoy participating in this community.

Thanks,
Blue

Guest

hello,

my mom owns 4 acres of land that i am planning on building a house on and wanted to know if a quit claim is the best way to get my husband and i on as owners so that we can get financing from a bank to build the house, without my mom having to pay a penalty for capital gains or gifting the land at 12000.00 a year?

jenkin7 · Posted: Tue Jan 08, 2008 5:05 am Post subject:

Hello Chrissy,

Even if you do a quit claim and the transfer is considered as gift, then also your mom shall remain responsible to file gift tax returns if she exceeds the gift tax exemption limit of $12,000 per year per person.

She may not have to pay the tax if she has not crossed the total lifetime gift exemption limit of $1 million but the filing of the returns is necessary every time she makes a gift.

If she is selling the land to you, then she will have to pay capital gains tax if the selling price exceeds the purchase price.

In both the processes, quit claim has to be signed to transfer the ownership rights of the property to you.

Guest

Nice site. Very useful contents. I've been looking for information for a long time, and I've found it exactly here. Thank you

jenkin7 · Posted: Wed Jan 09, 2008 12:30 am Post subject:

Hello Alexander,

Welcome to the forums.

Thanks for your appreciation.

Which information have you been looking for?

Feel free to ask the community if you have any further query.

Guest

can a person Quit Deed their house, to avoid the state taking it in the case of having to live in a nursing home? Also , if a person Quit Deeds their home can they still live there and can the taxes still be paid in the original owners name with senior citizens discounts, or does the person whose name is on the quit deed automatically get the taxes

jenkin7 · Posted: Mon Jan 14, 2008 2:31 am Post subject:

Hello Terri,

According to your state laws, if the house is considered an exempt property, then transferring it to someone else may not be considered a fraudulent conveyance.

If the person is currently receiving medicaid, then transferring the property at a price less than the fair market value may make him ineligible for the medicaid benefits.

I think after signing a quit claim deed, you do not have the ownership rights any more. It is already transferred to the new owner and the property tax bills would be in the new owner's name. So, in that case, the original owner will not be able to get the senior citizen benefits.

But the quit claim has to be notarized and recorded at the County Recorder's Office in order to make that valid and effective.

Whether you may still reside in that property or not actually depends on the person to whom you are quit claiming your property.

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