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QuestionsinMD
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 Posted: Wed Mar 04, 2009 7:22 pm Post subject: Quitclaim Tax and Bankruptcy... |
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| My husband and I have decided to seek bankruptcy due to severe medical issues and lost of pay as a result. We had originally tried to sell our home for the past two years without success. Thus, we are filing chapt 7 to "give back" the property and to get rid of our debt that had accumulated. We have a friend who is willing to give us a mortgage for a house that we would be able to afford based on my spouse's income instead of both of ours. We have found our home of choice, but the bankruptcy is not finalized. We would like to have him purchase the home and then quickclaim the home to us after the bankruptcy is finalized. But we do not want to pay state transfer taxes twice. Does anyone know a workaround or a solution to our problem, or if it is even legal? (We live in Maryland) |
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 jenkin7
Joined: 04 Jun 2007
Posts: 3430
Location: Hawaii
514.35 Dollars($)
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| Posted: Wed Mar 04, 2009 11:25 pm Post subject: |
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Hi QuestionsinMD,
I think it would be legal as your friend will be quitclaiming the property to you and he is not the one who will file bankruptcy. You can avoid paying taxes if he quitclaims it as a gift because there are certain gift tax exemptions that can be availed of. However, It is better that you consult a bankruptcy attorney before you take any final decision. |
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