 platinumforests
Joined: 08 Apr 2009
Posts: 1
1.32 Dollars($)
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 Posted: Wed Apr 08, 2009 9:06 am Post subject: Tax Ramifications with a Quit Claim Deed - Need advice by 04 |
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I'm having my absent business partner Quit Claim her half of our investment property to me. We bought the home for $115,000 back in 2004, and it's lost value and is now worth $90,000. I was hoping to deduct this loss when I sell it this year. What amount must I Quit Claim the property from her to me for to ensure that I'm not paying Capital Gains or not getting my loss deductions? I owe $89,900 on the home and it's located in Pennsylvania.
Thank you so much in advance,
Beth |
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savior70
Joined: 25 Mar 2009
Posts: 1422
Location: Florida
168.75 Dollars($)
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| Posted: Thu Apr 09, 2009 3:33 am Post subject: |
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Hi platinumforests,
You are required to pay the capital gains tax only if you gain profit out of sale of the property. Considering the amount of money you owe on the home and the reduction in its current value, it is not likely that you will make any gain from the sale. Instead, if you suffer loss due to the sale you can claim the loss deduction on your taxes. If she is going to quitclaim her interest, she is required to pay gift tax, not you. However, there are certain gift tax exemptions that she can avail. |
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