CAPITAL GAINS

PATTYCHAPIN · Joined: 18 Mar 2007 Posts: 1 1.28 Dollars($)

5 1/2 YEARS AGO MY BROTHER DID THE FINANCING ON OUR HOME. wE PUT THE DOWN PAYMENT DOWN AND HAVE DONE THE MORTGAGE PAYMENTS MONTHLY. HE DID THIS BECAUSE OF OUR CREDIT.WEWANT TO SELL THE HOUSR ANS WAS WODERING IF WE DID A QUIT CLAIM DEED TO PUT THE HOUSE IN OUR NAME TO SELL AND GET A NEW HOUSE IN OUR NAME WOULD WE STILL HAVE TO PAY CAPITAL GAINS TAX. OR i SHOULD SAY MY BROTHER?

jameshogg

Hi Pattychapin,

First of all, you need to tell the lender about your plans of selling the home. This is because there is a mortgage against the home. Then if your brother is on the property deed, he should quit claim it to you so that you become the owner. This will give you the rights to sell the property.

When you sell property, you need to pay capital gains tax on the profit obtained through the sale. Your brother will not have the liability to pay the tax if he quits his ownership on the property.

Thanks,
James.

Guest 0.10 Dollars($)

One who owns property and sells it at a certain profit should pay the capital gains tax. If the house is quit claimed to you, it's your responsibility to pay the tax. Otherwise, if both you and your brother's names are on the deed, and the property is sold at the consent of your brother, then both of you are liable to pay.

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