Posted on: 03rd Jul, 2007 03:15 pm
If we do a quickclaim deed on investment property to our son, will he be entitled to the property tax, mortgage interest and depreciation writeoffs? We would like to leave the actual mortgage in our name and he will make all payments. Thank you.
"If we do a quickclaim deed on investment property to our son, will he be entitled to the property tax, mortgage interest and depreciation writeoffs? We would like to leave the actual mortgage in our name and he will make all payments. Thank you."
As owner of the property he will be entitled to depreciation & tax write offs but won't be able to claim mortgage interest deductions as he will not be on the loan.
Miller
As owner of the property he will be entitled to depreciation & tax write offs but won't be able to claim mortgage interest deductions as he will not be on the loan.
Miller
I would add Shj that the mortgage company might not allow the property to be transferred in his name while you continue the mortgage. They can ask for the mortgage to be refinanced by your son in his name or paid off.
Hi shj,
After the deed when your son becomes the owner of the property, he needs to pay the tax and other depreciation write-offs. But to get the interest on the loan, he should either have to refinance the loan in his name or you are to pay it off as it is in your name.
After the deed when your son becomes the owner of the property, he needs to pay the tax and other depreciation write-offs. But to get the interest on the loan, he should either have to refinance the loan in his name or you are to pay it off as it is in your name.
If the lenders is not informed about the property transfer and later on he comes to know of it then he can demand full pay off as per due on sale clause that most mortgages nowadays have.
Hi Shj,
Welcome to the forum.
If you sign over a quitclaim deed and convey your interest in the investment property to your son, he will be getting the ownership rights on that property. Hence, he will be responaible3 to pay the property taxes. But in order to avail the mortgage interest write-off, the loan should be transferred to your son. This is because the criteria for availing interest write-off is that, the person should own the property and at the same time, he should be making the payments, with the loan being in his name.
Regarding the depreciation write-off, it is possible for him to get it as he will be the owner of the property.
Hope this helps...
God bless you.
Samantha
Welcome to the forum.
If you sign over a quitclaim deed and convey your interest in the investment property to your son, he will be getting the ownership rights on that property. Hence, he will be responaible3 to pay the property taxes. But in order to avail the mortgage interest write-off, the loan should be transferred to your son. This is because the criteria for availing interest write-off is that, the person should own the property and at the same time, he should be making the payments, with the loan being in his name.
Regarding the depreciation write-off, it is possible for him to get it as he will be the owner of the property.
Hope this helps...
God bless you.
Samantha
