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Tax implication when selling property after quit claim deed

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
My Mom Quit claimed her property into both my name (son) and her name with full rights of survivorship. Upon her death, will I have to pay gift tax? If she lives for 10 more years, will I have to pay a gift tax if the property is currenty worth $120K?
Posted on: 24th Jan, 2009 08:48 am
As you have rights to survivorship, I don't think you will require to pay gift tax when you accquire the property after her death.
Posted on: 25th Jan, 2009 10:42 pm
I have Quit Claim Deeded a mobile home + land to my daughter. I have two questions. 1) For this gift transfer do I have any income tax implications? I purchased two years ago and fixed up and took deductions for repairs on income tax as rental property. Now have Deeded it over to daughter. what happens on my income tax to this asset? It is just dead or how do I show it removed? 2) If daughter sells proerty does she have any income tax implications? If yes, How do you place value on a gift? Thanks for your time. Judy
Posted on: 25th Mar, 2009 10:45 am
Judy...If you have gifted the property to your daughter, then you'll have to pay gift tax for this transfer. As the property has been transferred to your daughter, she will have to pay taxes for that property. If your daughter sells the property she'll have to pay capital gains tax.
Posted on: 25th Mar, 2009 10:43 pm
What gift taxes do you have to pay for property quick claimed to you? If any, when do they have to be paid?
Posted on: 12th May, 2009 10:04 am
I and a cousin own 1/3 interest my mothers house but now we wont to quit
claim full interest since we have been paying her taxes and repairs, insurance.My mother is incompetent to take care of her affaires and is in
a convalesant place and an medical. Is this possible to do. the house is assessed at 25,000.
Posted on: 18th Jun, 2009 08:29 pm
If I quit claim a deed with $100000 mortgage and the value of the home
is $120,000 will the grantee pay gift tax on $20,000 or $120000
Posted on: 01st Aug, 2009 03:19 pm
Hi Assistance,

As far as I know, you do not need to pay gift tax when you receive a piece of property as a gift. It is the grantor (the person transferring the property) who needs to pay the gift tax. As a grantee, you are free from paying any gift tax.

Hi Jane,

I believe it is quite possible for you and your cousin to quitclaim the property. You can sign the deed as grantors and transfer your property ownership to the grantee. After you sign the deed, make sure it is notarized and recorded with the county clerks office. Without proper notarization and recordation, the transfer will not be considered valid.

Hi dankennedy,

The gift tax amount depends on the value of the property. It does not depend on the mortgage owed on the property. So, if the property is valued at $120,000, the gift tax will be calculated on this amount. However, the entire amount of $120,000 is not taxable. There are gift tax exemptions available. The annual gift tax limit for 2009 has been increased to from $12,000 to $13,000 per person, per year.
Posted on: 04th Aug, 2009 01:41 am
Daughters ex-husband is selling their home and needs her to sign a quit claim deed, before he can complete sale. Her name is still on mortgage loan, until sale goes through & he pays off loan. Is there any way to protect her liability in signing quit claim?
Posted on: 18th Aug, 2009 02:21 pm
Hi,

Once your daughter signs the quitclaim deed she'll relinquish all her rights to the property. But her name will be there on the loan. In case, the property is not sold and the mortgage is not paid, her name will remain on the loan. If the house sells for less than what is owed on the property, there will be a deficiency for which the lender can come after your daughter.

The only way to protect her from the liability of the mortgage would be to get it in writing from her ex that he'd sell the property and pay off the mortgage. But if there's a default on the loan, her credit cannot be protected.
Posted on: 19th Aug, 2009 05:52 am
Which format would be better to use Grant deed or Quit claim.? I presently own 50% of property as Tenants in Common but will like to convert my share of property to myself & other as joint Tenants.
Posted on: 23rd Dec, 2009 10:32 am
Your query has been answered in the given page:
http://www.mortgagefit.com/quitclaim/ownership-title.html

Take a look at it. I hope it will help you.
Posted on: 23rd Dec, 2009 09:28 pm
my aunt is 90 and she quit claimed her home to me 5 years ago in michigan.
1. she needs to get some money out of the equity in the home, and i'm not sure if it is better for her to get a home equity loan now, or wait for me to get the quit claim recorded, and then i get the home equity loan so she can have money. 2. also, when should you normally get a quit claim deed recorded? 3.once i get it recorded, what do i need to do to get a home equity loan on the property, if my aunt is still living there?
Posted on: 25th Feb, 2010 03:50 pm
You should have recorded the quit claim deed before. I doubt whether or not the deed will be considered as valid. If the deed is considered valid, then you should record it and then take a home equity loan to help your aunt.

Are you staying in the property? If yes, then it won't affect your eligibility to get a loan though your aunt is staying in that property.
Posted on: 26th Feb, 2010 02:23 am
In 1987 after the death of my mother, my father executed a quit claim with life estate (in FL) to me "for and in consideration of the sum of Ten and no/00 dollars." After his death in 2008, I went to the courthouse to have his named removed from the document and the mobile home title. In 2009, I sold the mobile home and the land for $42,000. What will be my tax implications for the sale of the mobile home and land? Thank you...kjh
Posted on: 30th Mar, 2010 06:01 pm
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