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Tax Implications

Posted on: 27th Sep, 2009 10:14 pm
My wife and I were recently added to title on my mother's second home as joint tenants (mother, son and daughter-in-law on title as joint tenants). My wife and I currently live at the property and are planning to remodel the older home. In order to obtain the loan, the bank/escrow company required my wife and I to be added to title because my mother did not meet the income requirements by herself (retired). My question is whether there are any tax implications for my mother or my wife and I (i.e., gift tax), since my wife and I were only added to title. Thanks in advance for your response.
As your mother has added your names to the property deed, she may be liable for paying the gift taxes. However, there are certain exemptions in this regard. You can check out the gift tax exemptions from the given page:
http://www.mortgagefit.com/gift.html#111114
Posted on: 28th Sep, 2009 02:24 am
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