Quit Claim Deed Question...

Guest 0.10 Dollars($)

Hi...

My dad owns a house...its paid for and in his name. He wants me to have it so I can get a home equity loan in my name so I can pay for school....is a Quit Claim Deed the best way to do this...and would I have to pay a gift tax? I mean can it be just as simple as signed the quit claim deed form?

Thanks in advance.

Guest 0.10 Dollars($)

Hi John,

The quit claim is the best option to transfer ownership within family members.

If the equity in the home is less than $22,000, then you don't have to pay tax for the transfer. But if it is more than that, your father may have to file some other forms with the IRS.

Guest 0.10 Dollars($)

And which forms would he have to fill out?

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi John,

Yes, I think Quitclaim is the best option for you to transfer the property to your name. Your father needs to sign the deed in front of the notary officials. The notary officials also need to sign the deed as witness. And then, you should record the deed in County register office to make the deed valid.

Regarding gift tax, you need not to pay anything. Only the donor pays the gift tax.

Thanks,
Larry

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello John,

The limit is $12,000 till which you don't have to pay tax.

After that you have to file form 709.

You may have a look at the form here www.irs.gov/pub/irs-pdf/i709.pdf

Guest 0.10 Dollars($)

Thanks for the answers guys but I have one more question....

I think my father is deliquent on his property taxes.....can he still sign the Quit Claim Deed?

evolovik26 · Posted: Thu Oct 18, 2007 6:59 am Post subject:

Yes but you will be responcible for paying the taxes or the government will come one day and take the property from you.

liaoyu03 · Joined: 09 Sep 2007 Posts: 213 9.09 Dollars($)

yes,a Quit Claim Deed the best way . It's also simple. But you will be responsible for the taxes .

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