What are the tax implications of quit claim deed?

Hello Alexander,

Welcome to the forums.

Thanks for your appreciation.

Which information have you been looking for?

Feel free to ask the community if you have any further query.

Hello Terri,

According to your state laws, if the house is considered an exempt property, then transferring it to someone else may not be considered a fraudulent conveyance.

If the person is currently receiving medicaid, then transferring the property at a price less than the fair market value may make him ineligible for the medicaid benefits.

I think after signing a quit claim deed, you do not have the ownership rights any more. It is already transferred to the new owner and the property tax bills would be in the new owner's name. So, in that case, the original owner will not be able to get the senior citizen benefits.

But the quit claim has to be notarized and recorded at the County Recorder's Office in order to make that valid and effective.

Whether you may still reside in that property or not actually depends on the person to whom you are quit claiming your property.

My Uncle quick claimed a house to my sister and I, the house was paid in full. Do we need to claim this to the IRS or do we wait until we sell it?
We now pay the taxes and home insurance on it.

Hi,

I've already replied your query at http://www.mortgagefit.com/quitclaim/claimtax-insurance.html . Please have a look at it.

i own a house in my name only, i want to add my finace to my mortgage loan and title. does a quit claim deed need to be done for this to happen? or would i just need to re-finance to put in both our names?

Hi Leah,

Welcome to the forum.

You can use a quitclaim deed to add your fiancé to the deed and you will have to refinance to add your fiancé on the mortgage. Talk to you lender and check out if mortgage assumption is possible.

Best of luck.
Larry

Hi leah,

You can talk to the lender so that he allows you to do the quitclaim and refinance simultaneously. That is, while you refinance the loan in your name as well as that of your finance, you can sign the quitclaim deed stating that you are giving away a part of your share to your fiance. Thus, the title and loan transfers can occur simultaneously.

Assumption and refinance are 2 different things. An assumption occurs when you are buying property from someone as well as taking over his loan.

I hope it's clear to you now.

God bless you.

Samantha

Hello,

My Dad would like to add me to the title on the home we are currently living in. The mortgage is in his name, but I pay the note. He would like for me to be able to claim the interest and taxes for next year as a write-off. By adding me to the title, will this qualify me? Even if this does not qualify me, how do I go about getting added to the title and what kind of form should I use?

Thanks

Steve

Hi Steve,

Welcome to the forum.

Your father can use a quitclaim deed to add you on the title. To know more about quitclaim deed check out this article - http://www.mortgagefit.com/quitclaim-deed.html

To get the tax break, you should finance the mortgage on you name.

Thanks,
Larry

Hi Steve,

First of all, to claim the deduction on interest, you need to have your name on loan as well as on the property title. Since the loan is in your father's name, so you can't qualify even if added to the title. Also, you should itemize your deduction to get tax benefits on your mortgage. To add your name on the title, as larry said, use a quitclaim deed.

good luck

How to I claim this house on my taxes if it was sold with a quit claim deed which was deeded to me and my sister

Hi Jean,

Welcome to the forum.

Who has sold the house which was deed to you and your sister? Now if you are the owner and someone else has sold the property then it is illegal. You should contact with an attorney ASAP.

Best of luck,
Larry

My Aunt wants to add me to her property by way of a quit claim deed. We did this ourselves. No mortgage on property and it has already been left to me in a will. She wants to avoid probate. When we took to record the a lady said she could loose her homestead exemption. We found out later that this is not true. When doing to deed we put her as grantor and her & I as grantee as she just wanted to add me, not transfer. Was this a correct move? Needless to say we did not record the deed as it scared us.

Hi DianeG,

Welcome to the forum.

If you do not record the deed in the County Recorder Office then the deed will not be considered as a valid deed.

BTW if you want to avoid probate than you can use a Ladybird deed. In that case your aunt will remain owner of the property as long as she lives and you will get the ownership after her death. If you want to know more about Ladybird deed check out this community discussion at http://www.mortgagefit.com/know-how/ladybirddeed.html#lifeestate

Feel free to ask if you have any further questions.

Best of luck,
Larry