Is Quit Claim Deed the right choice and what are tax implica

bcuda74 · Joined: 03 Jun 2008 Posts: 1 1.87 Dollars($)

Mother-in-law is willing to transfer undeveloped property to us in order for us to build a house. Told by developer a quit claim was the way to go. She still owes $8,000 on it to a private seller that we wish to roll into our construction mortgage. Is quit claim the way to go? Also what are the tax implications for her and us in regards to gift or transfer taxes. Obviously I don't want her to suffer financially as a result of such a generous gift.We live in florida and that is where the property is located but she resides in Delaware. Thanks for any help.

jheard · Posted: Tue Jun 03, 2008 8:56 am Post subject:

I recommend a Grant Deed. She may have to pay a gift tax, but there are many exemptions. For instance, there is an annual $12,000 gift tax exemption. Check with a CPA or estate planning attorney.

larry · Joined: 27 Jun 2007 Posts: 3328 474.44 Dollars($)

Hi Bcuda.

Welcome to the forum.

I think to use a grant deed the title should be clear and free from any liens. But if your mother-in-law owes $8,000 against the property then she cannot use a Grant deed and she will have to use a quitclaim deed.

BTW she may have to pay the gift tax if the property value exceeds the gift tax exemption limit. The annual gift tax exemption limit per person is now $12000.

Feel free to ask if you have any further questions.

Best of luck,
Larry

jheard · Posted: Wed Jun 04, 2008 8:05 am Post subject:

Larry, the type of deed used does not have anything to do with the fact that there are liens on the property.

A Grant Deed grants your interest in a property to someone else. If there is a lien, then your interest in the property is subject to the lien.

A Quitclaim Deed merely renounces, or quits, any interest, or claim, you have in the property. It does not transfer an interest. You can quitclaim your interest in a property, but the lien is still on the property, and you would still be liable for any mortgage.

Guest

My mom has a house that is about to be foreclosed on due to back taxes. She wants to do a Quit Claim Deed to me. Will that buy time to catch up on the past property taxes and will that stop the selling of the property next month?

jameshogg · Posted: Wed Apr 01, 2009 10:05 pm Post subject:

Hi Dakota,

You have mentioned that your mother's property will be foreclosed. In such a situation if she transfers the property to you, it will be considered as a fraudulent transfer. It would be better if she could pay off the back taxes first and then transfer the property to you.

Thanks

Guest

Can a person who obtained a QC from someone who QC himself and paid $10 for the QC Deed for a drainage/passway to a lake for the neighbors sell that property? and/or build on that property?
If the answer is no, what is the legal option for those whose easement was taken away?
If the answer is yes, what is the legal option to 'contest' the QC Deed and regain the property for the subdivision (multiple owners but no HO Ass.)
Thank you for your assistance...I need an attorney!
Silvia

smithsussane · Posted: Sun May 10, 2009 8:47 pm Post subject:

Hi Silvia!

Welcome to forums!

If the grantor was the owner of the property who quitclaimed the deed to the grantee, then the grantee has full rights to build on that property. If you think that there has been a fraud regarding the transfer of the property, then you can definitely consult an attorney.

Feel free to ask if you have further queries.

Sussane

Guest

Hello...
a friend and I have purchase two properties together as joint tenants. We have decided that we should separate the joint tenancy, on both properties, and each "take" one as sole owners.

We have executed quit claims for each property, thus giving each one full title to a respective property.
Neither property is a primary residence.
There is no money being exchanged.
The mortgages where paid in full prior to the transfer of ownership (by the respective individual).

How do I report such transfers on my taxes?
Would I be taking a gain for the 1/2 property I received, and a loss for the 1/2 that I gave away?

I know...not typical.

Hunter

jameshogg · Posted: Sun May 31, 2009 9:58 pm Post subject:

Hi Hunter,

In my opinion, the half of the property which you gave your friend will be considered as your loss and the half of the property that you received will be considered as your gain. I would suggest you to have a word with a tax assessor and take his opinion in this regard.

Thanks

Guest

what is the statute of limitations on some one contesting a quit claim deed

walter carter

smithsussane · Posted: Mon Jul 13, 2009 10:38 pm Post subject:

Hi walter!

Welcome to forums!

As far as I know, the statute of limitations for filing a quitclaim deed varies from state to state. You can contact an attorney and he can let you know the statute of limitation period for quitclaim deed in your state.

Feel free to ask if you've further queries.

Sussane

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