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Transferring Unwanted Property

Posted on: 05th Nov, 2007 03:40 am
My husband's mother is going to use a Quitclaim Deed to transfer property (acreage, no house) over to my husband. Last time we discussed it, she stated that she is going to add our children's name along with his. The kid's would like to transfer their portion back to their dad since they should not be involved in the first place. What kind of of tax implication will this do to my children who do not want the property in the first place.
Would it be better to quitclaim their interest or should we just purchase their interest?
Kathy
Hello Buffy,

Some states may charge certain fees for this kind of transfer and also include recording charges. Then there is the gift tax which one may have to pay if he quitclaims property to someone.

If there is less than $12,000 equity in the property, then the grantor does not have to pay any tax on that. Otherwise he may have to fill additional forms for that.

To know more about Gift tax implications on quitclaim, refer to http://www.mortgagefit.com/gift.html#exemption
Posted on: 06th Nov, 2007 02:27 am
Hi Buffy,

If your children quitclaims, they need not to pay tax. You may need to pay recording fees and some other fees
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Posted on: 06th Nov, 2007 03:37 am
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