quick deed tax question

Guest 0.10 Dollars($)

Hello,

I am going to have to pay any income taxes for doing a quick claim deed. I owed a balance of 30,000 on a piece of land that I purchased for 34,000. I was making payments for 18 months. My parents were looking for a piece of land to build a house. My parents payed off the remaining balance of 30,000. They made a check payable to the person financing the land. Then we did the quick claim about 2 months later. Do I need to pay any income taxes on that now? I'm thinking that would only be when my parents sell the land or in this case the house with the land because they built a house on it.

Niicss · Posted: Tue Apr 15, 2008 4:57 am Post subject:

Welcome angel,

I do not think that you need to pay an tax. You bought the property at 34,000 dollars but but your parents paid the lender 30.000 dollars and you have quitclaim deed the property to your parents. So I think you need not to pay the capital gain tax here.

Check out capital gain tax exemption limit

Let me know if you have any further quarries.

Guest 0.10 Dollars($)

niccss you mean there's no income tax on quitclaim deed? then what tax does one need to pay? does anyone ahvt to pay tax on a house quitclaimed and having a value $34000 almost 18 months ago? does the owner have to reappraise it's value?

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

Hello,

I feel you need not to pay income tax but you may need to pay gift tax as you have quitclaimed the property to your parents.

But you can be able to get Gift tax exemption

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