Will I be subject to taxes if I quitclaim deed a mortgaged h

Mas1954s · Joined: 02 Apr 2008 Posts: 1 1.38 Dollars($)

My daughter and son-in-law did not qualify to buy a foreclosure home, so My wife and I bid and purchased the home so that they would not lose this great deal. They live in this home and pay all mortgage payment and all bills. My daughter now wants us to quitclaim deed to her and hubby, and eventually refinance under her name now that their credit is much better. I am okay with this. Will this be considered a gift and who will have to pay the tax on this. Also when she does refinance in their name are there any other taxes (IRS) that I should be aware off. And when are taxes incurred in this transaction.

larry · Joined: 27 Jun 2007 Posts: 2951 411.26 Dollars($)

Hi,

Welcome to the forum.

I think you may have to pay gift tax as you are quitclaiming the property to your daughter. If you and your wife jointly file, then the gift tax exemption limit will be $22.000.

To know more about gift tax exemption, check out this community discussion at http://www.mortgagefit.com/discuss/about1725.html#5618

Hope this helps.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Niicss · Joined: 03 Oct 2005 Posts: 807 118.37 Dollars($)

Welcome Mas1954s,

If you quitclaim the property to your daughter and her husband you will be subjected to pay gift tax and the gift tax exemption limit is $12000

By the way, how much is the appraised value of your property?

Let me know if you have any more queries.

jheard · Posted: Mon Apr 07, 2008 7:35 am Post subject:

If you sell the property at market value to your daughter, you will not pay any taxes. If you gift it, you will pay gift taxes. Gifting occurs when you sign the deed to them.

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