I quitclaim deed

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Icon Mini Profile mpaul2





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Post Posted: Fri Sep 01, 2006 1:02 pm    Post subject: I quitclaim deed
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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
ugor

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Post Posted: Fri Sep 01, 2006 1:04 pm    Post subject:
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Hi,

Please if you can make it more clear, you had quit claimed the house to your brother and now he is purchasing it from you, but by quit claim it is already in his name.
b. henry

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Post Posted: Fri Sep 01, 2006 1:25 pm    Post subject:
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As you have quit claimed the house to your brother, its considered as a gift and would fall under gift tax calculations.

For gifts, per year exemption is up to $12,000.

Thanks
Icon Mini Profile mpaul2





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Post Posted: Fri Sep 01, 2006 1:37 pm    Post subject:
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I mean by quitclaim deed in 2004 the mortgage was still on my name , now he actually will buy the house for more $$$ trough a warrantee deed and the mtg will be on his name . Now the cap gain tax is the $$$ diff from the $$$ that I bought the house in 2004 , and the selling $$$ he's buying it . So that cap gain tax will I still be reponsible for it or he will .
He claimed that he will I just want to make sure
Thanks
ugor

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Post Posted: Fri Sep 01, 2006 1:46 pm    Post subject:
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Hi Paul,

The capital gain taxes are paid by the seller.

Don't know why brother said that he will be paying them.

Thanks
Icon Mini Profile mpaul2





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Post Posted: Fri Sep 01, 2006 1:51 pm    Post subject:
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Thank you Ugor
ugor

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Post Posted: Fri Sep 01, 2006 1:54 pm    Post subject:
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Thanks to you also for clearing my confusion about what you meant from your previous post. Smile
ugor

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Post Posted: Fri Sep 01, 2006 2:41 pm    Post subject:
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Hi,

Let me tell you another thing, if you live in the house for a minimum of two years out of a total of five years before its sale date, used it as your primary residence and is actually the single owner of the house, then you won't owe any capital gains tax for a profit amount of up to $250,000.
Icon Mini Profile Caron
Caron
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Post Posted: Fri Sep 01, 2006 9:08 pm    Post subject: RE: Capital gains taxes
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Hi,

Under the Taxpayer Relief Act of 1997, a homeowner can get exemption from capital gains taxes for up to $250,000 in sales profit for single filers and $500,000 in profit for married joint filers. But if you sell the home before meeting the ownership and residency requirements, you owe taxes on any profit.

The two years of residency in the property need not be continuous. One has to meet the tests for both ownership and using the property for different 2 year periods included within the 5 year period ending on the date of sale.

For more on capital gains taxes, refer to IRS publication 523 .

Thanks,

Caron.
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Post Posted: Sat Sep 02, 2006 5:47 am    Post subject:
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I don't think I am qualify for any tax releif because i Live MA the house is Fl and my brother is in FL. I actually never lived there . I was doing my brother a favor by getting the MTG on my name , but he actually paid for the payment every month. I guess that's why he thinks he'll owe the tax on the cap gain tax.
Thanks for all your answers all very helpful to know
This website is very helpful
Thanks again

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Icon Mini Profile Caron
Caron
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Post Posted: Sat Sep 02, 2006 11:58 pm    Post subject: RE: Tax exemption
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Hi,

Yes, if you are not staying there or haven't stayed any time, then you won't get the tax exemption. Since the house is in your name and your brother just stayed there, so you will be the seller and hence you owe the capital gains tax.

Thanks,

Caron.
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