Posted on: 04th Apr, 2006 12:58 am
I bought a property 1 year ago. I quit claimed the property after owning it about 2 months to my sister as a gift so she can have ownership on the house. The loan is under my name and she has been paying mortgage on it.
She is thinking of selling the place now. What is the tax implication of the sale? Since the deed is now under her name, would she be the one responsible for paying tax on the gain from the sale of the property or do i have to report the gain also on my income tax return at the end of the year? My name is no longer in the deed since I quit claimed it to her about 1 year ago.
Thanks,
Wonder
She is thinking of selling the place now. What is the tax implication of the sale? Since the deed is now under her name, would she be the one responsible for paying tax on the gain from the sale of the property or do i have to report the gain also on my income tax return at the end of the year? My name is no longer in the deed since I quit claimed it to her about 1 year ago.
Thanks,
Wonder
Hi Dot,
Since your daughter qill be quitclaiming the property to you, it will be your responsiblity to pay property taxes if you are the sole owner. If your daughter and you are both on the title, then it will be your joint responsibility.
There are discount or exemptions in property taxes. The Homestead Exemption can help you to exempt yourself from property taxes. But the property should be your primary home.
To avail homestead exemption, you can file for it. There's still much time left for it. After 2005, as per the laws, one can file for the exemption throughout the year when you receive the deed to the property till 1st March of the following year.
You may also check with your local county tax office on how much discount you might get in property taxes as a senior.
Take Care
Since your daughter qill be quitclaiming the property to you, it will be your responsiblity to pay property taxes if you are the sole owner. If your daughter and you are both on the title, then it will be your joint responsibility.
There are discount or exemptions in property taxes. The Homestead Exemption can help you to exempt yourself from property taxes. But the property should be your primary home.
To avail homestead exemption, you can file for it. There's still much time left for it. After 2005, as per the laws, one can file for the exemption throughout the year when you receive the deed to the property till 1st March of the following year.
You may also check with your local county tax office on how much discount you might get in property taxes as a senior.
Take Care
After a quitclaim is signed, does a former owner of real property remain responsible for delinquent taxes that accrued before the quitclaim?
Hello Maria,
If the ownership is transferred to the new owner, he is legally responsible for the paying the tax.
If the ownership is transferred to the new owner, he is legally responsible for the paying the tax.
I requested a lady bird deed lawyer gave me papers sayng to signquitclaim deed is this the same thing/?
Hi Janice,
Welcome to forums.
Ladybird deed serves the same purpose as a quitclaim. But there are other features of the former. Ladybird deed allows a person transferring ownership to stay on the property till his death and he will be able to sell it also during his lifetime. Know about Ladybird deed in detail.
For quitclaim deed, you may refer to the information available at http://www.mortgagefit.com/quitclaim-deed.html .
Thanks
Welcome to forums.
Ladybird deed serves the same purpose as a quitclaim. But there are other features of the former. Ladybird deed allows a person transferring ownership to stay on the property till his death and he will be able to sell it also during his lifetime. Know about Ladybird deed in detail.
For quitclaim deed, you may refer to the information available at http://www.mortgagefit.com/quitclaim-deed.html .
Thanks
I want to get property out of my name. Is it better to sell to the party or execute a Quit Claim to a friend of mine?
Hi shirley,
Welcome to the forum.
If you sell the property you will get some cash but if you quitclaim to your friend you will not get anything. BTW is it a mortgaged property?
Best of luck,
Larry
Welcome to the forum.
If you sell the property you will get some cash but if you quitclaim to your friend you will not get anything. BTW is it a mortgaged property?
Best of luck,
Larry
But if you sell Shirley, you may have to pay capital gains tax provided you don't qualify for the exemptions . Again, if you quitclaim, you may have to pay gift tax (as transfer through a quitclaim is often regarded as gift). But again there are exemptions applicable. However, for a simple transfer of interest, a quitclaim is preferable.
Know about Gift tax exemptions .
Good luck
Know about Gift tax exemptions .
Good luck
my father and mother died intestate. my father did a quit claim deed over to my sister on my parent's home before their death.
my sister has now sold the house and i had to sign some affidavit stating that she and i were the only children of my parents.
please advise if i am eligible for at least half of the proceeds from the sale of the house. are there some type of tax implications if my sister gives me half or does she have to give me annual amounts as a gift?
my sister has now sold the house and i had to sign some affidavit stating that she and i were the only children of my parents.
please advise if i am eligible for at least half of the proceeds from the sale of the house. are there some type of tax implications if my sister gives me half or does she have to give me annual amounts as a gift?
Hi Renee,
Welcome to the forum.
If your parents have quitclaimed the property to your sister only, then you don't have any rights on that property. But if now your sister quitclaims half of the property and add you in the deed then you will get half of the ownership to your name.
Regarding tax implication, if you can sell the property in an amount more than you have bought and gain some money, then you will have to pay Capital gain tax on it. Though, you will have 250000 dollars of capital gain tax exemption.
Best of luck,
Larry
Welcome to the forum.
If your parents have quitclaimed the property to your sister only, then you don't have any rights on that property. But if now your sister quitclaims half of the property and add you in the deed then you will get half of the ownership to your name.
Regarding tax implication, if you can sell the property in an amount more than you have bought and gain some money, then you will have to pay Capital gain tax on it. Though, you will have 250000 dollars of capital gain tax exemption.
Best of luck,
Larry
I try to apply for a home loan and transfer the loan to my sister in one year if so can I transfer the loan without any problem.Thank
Can I transfer a home loan to my sister after a one year without any problem.
My dad put the house in a living trust and also prepared a quit claim deed for to transfer upon his death. The house is paid off. Will I have to pay Federal income tax in the transfer of the house?
Hey Goldie,
When the property gets transferred in your name, you will have to pay transfer taxes on it. As you are inheriting the property from your father, you will also have to pay inheritance taxes. You can consult a tax adviser and take his opinion in this issue
When the property gets transferred in your name, you will have to pay transfer taxes on it. As you are inheriting the property from your father, you will also have to pay inheritance taxes. You can consult a tax adviser and take his opinion in this issue