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What are the tax implications of a Quit Claim? Who pays the property tax?

Thank you.

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Joe!

Welcome to forums!

As far as I know, you need to use a quitclaim deed in order to get the property transferred in your name. Nevertheless, you can contact a real estate attorney and he will help you in this regard.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 03/22/2012 - 00:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Around 1980 my in-laws did a quitclaim deed on their house adding my husband, his brother and sister to the deed. We found out about it when my mother-in-law died in 2001. His dad died in 2010 and now I wonder how this house is to be handled. It is located in Massachusetts and we live in Washington state.

We want to sell as my husband, age 64, is ill with Alzheimer's and we need whatever funds we can get from it. His sister is also ill with Alzheimer's and her daughter is her guardian. His brother refuses to sell the house as he has things stored there (doesn't live there though) plus won't let us into the house. Last I looked his brother had not notified the county/state because the parents and children are named as owners.

My question is: when it is sold, what are the tax implications? We live off SSDI so have low income as does his sister. Is there capital gains that will have to be paid on it? We figure our share will be $40-50,000. If so, will the value be based on when the quitclaim deed was done or when their dad died?

Like | Dislike | Share | Posted: Sat, 04/07/2012 - 17:47 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi CharB,

When the property is sold off, all of you will be liable for paying capital gains taxes depending upon the amount of profit you make. As far as I know, the amount will be based on the price of the property when the quitclaim deed was done.

Thanks

Like | Dislike | Share | Posted: Sun, 04/08/2012 - 22:57 | Post subject:

petekolackovsky1's picture
petekolackovsky1 | Joined: September 14, 2011 12:05 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hey CharB,

You can try to sell your share in the home to your brother since it seems that you don't want it anymore and he has use for it. Talk to him to buy you out, that way you recieve your share in equity and he gets 66% of the house instead of 33%. Also, as jamesshogg states, all 3 of you will have to pay capital gain taxes if all of you decide to sell.

Like | Dislike | Share | Posted: Thu, 04/19/2012 - 14:47 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother and I co own a home with rights of survivor ship. Since that purchase was made, I got married. Now, we're all in agreement to take my mother off the deed and add my wife.
There will be no exchange of money since I'm already on the deed and we're basically exchanging one person for another.
Is there any gift, or transfer tax involved?
Also, mortgage is in my name, so my wife is not assuming any debt.
I'm in the state of Michigan.

Like | Dislike | Share | Posted: Fri, 04/27/2012 - 13:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My husband and i just had his parents Quit claim the two of us on their home along w/them. They are still on title because they have the loan. Can my husband and I still deduct the taxes once Quit claimed to us for the year of 2012. We Quit claimed on Sept. 2012. I know only one person can deduct the taxes, his parents want us too. Can we deduct for this year 2012?

Like | Dislike | Share | Posted: Thu, 09/06/2012 - 09:34 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mr.Rick,

You should contact a tax adviser and take his opinion in this matter. He will better help you know whether or not your husband will be able to get a tax deduction.

Thanks

Like | Dislike | Share | Posted: Thu, 09/06/2012 - 22:27 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi joey,

As far as I can understand, there will be a gift tax and transfer tax. Nevertheless, it will be better if you could contact a real estate attorney and take his opinion in this regard.

Like | Dislike | Share | Posted: Mon, 04/30/2012 - 01:54 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

If you're the only one on the property deed, then you can add someone else to property deed without any issues. However, if your husband's name is mentioned on the property deed, then you can add someone else to the deed only with his permission. As far as the mortgage is concerned, you will be liable for it. You cannot quitclaim your loan.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 05/24/2012 - 00:02 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Our older mobile home is financed in my mothers name only. She has since filed a quit claim listing her and my husband as owners. My mother is older and we would now like to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the house in my husbands name only how do we go about this?

Like | Dislike | Share | Posted: Thu, 08/31/2006 - 06:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

If you just want to transfer the loan obligation in your husband's name only without changing the terms of the loan then you can choose a method known as [url=http://www.mortgagefit.com/know-how/novation-mtg.html]novation[/url].

In novation the previous borrower is replaced by a new one but the obligations of the loan remain the same.

Like | Dislike | Share | Posted: Thu, 08/31/2006 - 11:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

If you are looking to refinance to get better rates then it is ok, it will help to change the liability to your husband's name, but if you are not doing the refinance to gain from any new lower rates then from my view point novation should be the option to opt for.

I hope my suggestion helps.

Thanks

Like | Dislike | Share | Posted: Thu, 08/31/2006 - 13:34 | Post subject:

blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

If the purpose of refinance is to remove your mother from the loan, then I think novation can be a better option instead of refinance.

Have a look at the details given on this page about novation which actually would serve your purpose quite nicely.

Thanks
Blue

Like | Dislike | Share | Posted: Thu, 08/31/2006 - 15:25 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You should talk to the lender if you want to take a refinance loan from him. Or else, you may shop for a better deal with different lenders and then choose the right person for your loan.

To know how to refinance, visit our section on this topic.

Feel free to come up with further queries.

Thanks,

Caron.

Like | Dislike | Share | Posted: Thu, 08/31/2006 - 21:21 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I quitclaim deed a house to my brother in 2004 after I bought but the mtg was still on my name , now is actually buying it from me for more $$$. After the settlement will I be responsible for cap gain tax or he will
Please help

Like | Dislike | Share | Posted: Fri, 09/01/2006 - 12:56 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Your question has been answered on this page, have a look :
http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption

thanks
henry

Like | Dislike | Share | Posted: Fri, 09/01/2006 - 14:52 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Byron,

At the time of quit claim you will be required to consider whether the gift taxes would be applicable for you or not. There is an exemption limit for gift taxes fixed per year per person (to whom the gift is donated). The limit is $12,000 for 2006.

And when the property is sold the capital gain taxes are to be calculated with an exemption limit of up to $250,000 ($500,000 for married couple) in profit from the sale for a single owner if he has used the house as a primary residence for at least two years of the preceeding five years before the house is sold.

Thanks
James

Like | Dislike | Share | Posted: Fri, 09/08/2006 - 17:58 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

There are two types of taxes involved, capital gain and gift taxes.

Capital gain taxes are calculated at the time of sale of the property and the gift taxes if any are calculated when the quit claim is done.

Like | Dislike | Share | Posted: Fri, 09/08/2006 - 14:08 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am in the middle of a pending divorce and it is my hope to keep the house. My husband tells me we can not sell now because we have only been in our home for 10 months and if I refinanced it would be considered a sale. I want to know if he quit claimed the house to me would all taxes apply at the time I would refinance or sell or would they be in effect at the time the quit claim deed was issued to me?

Like | Dislike | Share | Posted: Fri, 09/08/2006 - 09:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

You will find good information here, http://www.mortgagefit.com/discuss/quitclaim-taximplications.html . A few months earlier, I visited this site and found this information very useful

hope it also helps you

Like | Dislike | Share | Posted: Sat, 09/09/2006 - 22:41 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Timothy,

Welcome back.

[quote:e76d70d61f]is it best to contact the mortage lender prior to recording the quit claim? What scenarios can play out in notifying or not? [/quote:e76d70d61f]
Yes, it is best to inform the mortgage lender prior to recording the quit claim. The lender should be notified of any property transfer as the loan is offered keeping the property as security.

If the transfer is not notified, the lender may create problems and not co-operate with you in case you or your father (whoever is on the loan) are late on payments for some months or you need to negotiate for an alternative payment plan. But such scenarios will not take place if the monthly payments are made on time in order to avoid any default on the loan.

Thanks,

Caron.

Like | Dislike | Share | Posted: Mon, 09/18/2006 - 23:34 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Timothy,

A [url=http://www.mortgagefit.com/quitclaim-deed.html]quit claim deed[/url] is not taken to be valid if it is not filed with the county.

Your father cannot legally have a tax reassessment done on your property, as the quit claim deed isn't filed yet with the county.

It is better to file the deed as early as possible, so that your father can request for the reassessment.

Thanks,

Caron.

Like | Dislike | Share | Posted: Sun, 09/17/2006 - 22:03 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My uncle and father (brothers) bought a house together and each own 50 %. My father has a Family Trust and placed his 50% ownership into his trust. My uncle recenlty quit claimed his 50% into my father's family trust. Would my father (and mother who is name also is on the family trust) have a tax reassessment for the 50% quit claimed to him by my uncle. What tax implcation will my uncle incur. Father has not yet filed the quit claim deed with the county.

T.

Like | Dislike | Share | Posted: Sun, 09/17/2006 - 21:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

The reassessment does not occur if the transfer into the family trust is made by one who is a trustee.

Since uncle is not in the trust the reassessment might take place. You should get in touch with the County Tax Assessor for more details.

Like | Dislike | Share | Posted: Mon, 09/18/2006 - 18:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Caron,
would the 50% that was quit claimed to dad be reassessed at current market value? and would uncle need to file a 709 or 706 form on his federal income taxes?

What if uncle dies before the quit claim is filed?
Timothy

Like | Dislike | Share | Posted: Mon, 09/18/2006 - 07:40 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Timothy,

If uncle dies before the quit claim is filed then it will not be considered as a valid legal document.

Like | Dislike | Share | Posted: Mon, 09/18/2006 - 13:13 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you Caron, Caymmi & Clark!

I called the county assessor and indeed the 50% will be reassessed for current tax year once the quit claim is recorded.

Lastly is it best to contact the mortage lender prior to recording the quit claim? What scenarios can play out in notifying or not?

Timothy

Like | Dislike | Share | Posted: Mon, 09/18/2006 - 23:17 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Timothy,

[quote:5f8df3303a]would the 50% that was quit claimed to dad be reassessed at current market value? [/quote:5f8df3303a]
Yes, the 50% share of property will be assessed at current market value.

[quote:5f8df3303a]would uncle need to file a 709 or 706 form on his federal income taxes? [/quote:5f8df3303a]
Since your uncle has quit claimed the property, so it is considered as a gift. Your uncle needs to file Form 709 for paying gift taxes provided the value of the property gifted to your father does not exceed $12000 (for 2006, this is the gift tax exemption limit).

Let us know if you have any other query.

Thanks,

Caron.

Like | Dislike | Share | Posted: Mon, 09/18/2006 - 22:23 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Leslie,

Yes, your mom can transfer her interest to you all through a quit claim deed. But as far as transfer of ownership rights are concerned, I shall recommend a grant deed. Unlike a quit claim, a grant deed helps to transfer ownership thereby ensuring that no other person can claim his rights on the property.

Thanks,

Sara.

Like | Dislike | Share | Posted: Sun, 09/24/2006 - 09:33 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Leslie,

Your mom can give away her interest in the property to her children through grant deed but the mortgage balance is not transferred in the process. So, she has to continue paying the loan even after signing the grant deed. And, don't worry, your mom's husband cannot take away the property if your mom hasn't made any provision for its transfer to him. Without a legal process, the husband cannot simply get the property in his name.

Thanks,

Caron.

Like | Dislike | Share | Posted: Sun, 09/24/2006 - 10:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother bought a house in Florida and a few years later remarried. Although they refinanced the house (with my mom's money), the deed was never changed and my mom's name is the only one on the deed. Now they are both getting old and sick. I am afraid that if my mom passes away before he does, he would get the house which was hers to begin with. Would it help to get my mom to quit claim her interest to us (her children) to avoid her husband getting the house? I believe there is still a mortgage balance. Thank you.

Like | Dislike | Share | Posted: Sat, 09/23/2006 - 10:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

MY dad was in a nursing home for 11 months before passing away in June 06. Medicaid placed a lein on my mom and dad's home for the care/expenses. My mom needs a reverse mortgage for repairs to the same home. Can she get a reverse mortgage with that lein "looming" in the back ground? Thank you.

Like | Dislike | Share | Posted: Thu, 10/19/2006 - 21:47 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Nancy,

Welcome to the forums.

Your mom can get a reverse mortgage with the lien on the house. But she has to pay off the outstanding debt in order to get rid off the lien as soon as she gets the loan. She can use the loan proceeds obtained from the reverse mortgage in order to clear the lien.

Thanks,

Caron.

Like | Dislike | Share | Posted: Thu, 10/19/2006 - 22:36 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother wants to quit claim her property over to me, she owes a balance of 85000 on a house worth 130000 or more. I spoke with the mortgage company and they stated if I was placed on the deed they would call the note. Are there lenders that will allow me to refi without seasoning?

Like | Dislike | Share | Posted: Sun, 10/22/2006 - 13:52 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Owen,

Welcome to the forums.

Perhaps you mean to say that if your name is placed on the deed, then the mortgage company will demand the outstanding balance asap. But I don't know why they are doing this.

The quit claim does not transfer the liability of repaying the loan. Your mother is still responsible for paying off the loan. Well, you can just ask them as to why they would call the note. And, then possibly you can look for refinancing. There are a number of lenders in the market working towards providing refinance loans without any seasoning. All you require is the patience to shop around and find out the best deal that can work for you.

Before you go for a refinance, get proper knowledge so that you can benefit from the deal. Check out for the required information from the section on Refinance.

Hope this information will be helpful for you.

God bless you

Samantha

Like | Dislike | Share | Posted: Sun, 10/22/2006 - 21:59 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I was able to locate a couple of lenders that would refi without seasoning. my mothers lender said because it was bought under a first time home buyers program they would call the note. Does that make sense

Like | Dislike | Share | Posted: Tue, 10/24/2006 - 15:30 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Owen,

There is no such provision that first time home buyers can not refinance their loans. As there is enough equity in the house, I think you should take cash out refinance to pay off the current lender.

Thanks
Miguel

Like | Dislike | Share | Posted: Tue, 10/24/2006 - 17:07 | Post subject:

helping_user's picture
helping_user | Joined: March 31, 2006 03:39 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Owen,

I just support Miguel. As I know, there is no such provision that first time buyers cannot [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the loan.

The rule is different. In some cases the commercial lenders will put a restriction on your loan so that you cannot refinance it for first 3 or 6 months. But most non bank small lenders do not have any such limitations.

Thanks

Like | Dislike | Share | Posted: Wed, 10/25/2006 - 01:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My 88 year old father in law wants to transfer the title of his home to his three children by just changing the deed. He is very unreasonable and I was wondering if he just does some kind of simple transfer would his children be liable for gift or capital gains taxes as of the date of the transfer

Like | Dislike | Share | Posted: Sun, 10/29/2006 - 11:17 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tishmona,

If your father simply transfers the title to the property to his children, then he may have to pay for the gift taxes. The children need not pay. And, if your father may get an exemption on gift taxes for a property worth $12,000, the exemption limit for 2006. For more details, refer to a previous discussion on Gift tax exemption .

Thanks,

Caron.

Like | Dislike | Share | Posted: Sun, 10/29/2006 - 20:37 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What happens if you filed a summons with the court to have your home sold. How long is the process?

Like | Dislike | Share | Posted: Tue, 12/19/2006 - 09:59 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mia,

I guess you are talking about partition lawsuit.

Well, after you have filed a summons with the court to have your home sold, the court will probably allow for a 30 day time period to resolve differences between you and the co-owner. If you are not able to come up with any kind of solution, then the court orders a forced sale of the property.

To know more about Partition Lawsuit, go through our previous discussions.

Thanks,

Sara

Like | Dislike | Share | Posted: Tue, 12/19/2006 - 20:42 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am considering purchasing a home from my father which he owns outright. I have heard alot about Quit Claim deeds. How would this benefit both of us as opposed to going through the traditional way of obtaining a mortgage broker and so forth.............

Like | Dislike | Share | Posted: Mon, 12/25/2006 - 15:22 | Post subject:

helping_user's picture
helping_user | Joined: March 31, 2006 03:39 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mikeco,

As far as I know, you cannot buy a home with quit claim deed. You can directly get ownership rights on the property if your father signs over a quit claim deed to you. But this will depend upon your father as to whether he is willing to give away the property without being offered a suitable price for it.

Thanks

Like | Dislike | Share | Posted: Mon, 12/25/2006 - 20:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My brother and I have title on the house; I make mortgage payment, property taxes on the house. My brother is out of the country doing business and owed credit card debts. His business is not doing well, he does not have any income now. Can he file for chapter 13 ? what are the consequences on the property that we both own after he file chapter 13, will the judge ask him to sell part of the house to pay for the debts ? Can he quit claim deeds the house to me and file chapter 13 right away or he has to wait 2 years ? Thank-you.

Like | Dislike | Share | Posted: Fri, 01/05/2007 - 15:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In chapter 13, the house will not get sold for meeting his debts. There will be a payment plan according to which he will have to make payments.

Benjamin

Like | Dislike | Share | Posted: Fri, 01/05/2007 - 16:01 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How can he make payment if he does not have any income and he intend to live out of the country (he will only come back to US for visit). Should he quit claim the house to me ? would it make sense to do that ? Thanks.

Like | Dislike | Share | Posted: Fri, 01/05/2007 - 16:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Well, if he quit claims the house to you it may be considered a fraudulent transfer. As it will be a transfer within 1 year of filing for bankruptcy without receiving a fair value for such transfer. And can be canceled by the bankruptcy trustee.

If he is not in a position pay anything then chapter 7 will be the option. As the home is jointly held, his share of interest in the home from the sale will be calculated for payment to his creditors.

But let me tell you it is better to avoid bankruptcy as it has very negative affect on one's credit profile. Rather consult any debt consolidation or settlement organization to figure out a way to come out of the debt burden.

Benjamin

Like | Dislike | Share | Posted: Fri, 01/05/2007 - 16:24 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for the answers.... can I buy him out of the property by paying off his debts (ie: his credit cards debts is 50K, I will pay off this 50K and take him out of the title of the house) what are the tax consequences on this ? Thanks again.

Like | Dislike | Share | Posted: Fri, 01/05/2007 - 16:32 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

[quote:c2bd33d017]what are the tax consequences on this ?[/quote:c2bd33d017]
Property transfer taxes will be applicable as per the value of the home and its current appraised value. The exact amount will depend on the state you are in and the state laws.

Benjamin

Like | Dislike | Share | Posted: Fri, 01/05/2007 - 16:47 | Post subject:

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