Posted on: 30th Jun, 2007 09:39 am
I have a friend who owns a house free and clear. He is in need of money and wants to sign a house over to me using a quitclaim deed. He is willing to allow me to pay only a percentage of the cost and then to repay him the rest when I sell the house. Are there any things that I should consider?
Hi New Yorklady,
You meant to say that your friend is signing his house to you as he is in need of money and you are paying a percentage of the cost of the house now and will pay him the larger amount when you sell the house.In that case, if you have a profit on selling the house later , you may have to pay the capital gain tax if you do not qualify for the tax exemption which is upto $ 250,000 on sales profit for a single tax filer.
You meant to say that your friend is signing his house to you as he is in need of money and you are paying a percentage of the cost of the house now and will pay him the larger amount when you sell the house.In that case, if you have a profit on selling the house later , you may have to pay the capital gain tax if you do not qualify for the tax exemption which is upto $ 250,000 on sales profit for a single tax filer.
Hello NewYorklady,
As you are going to initially pay a percentage of the cost and then you would pay him the rest after you sell the house, then this process is simply a form of selling the house. If you want more information on capital gains exemption, you can read the discussion on Capital gain exemption
As you are going to initially pay a percentage of the cost and then you would pay him the rest after you sell the house, then this process is simply a form of selling the house. If you want more information on capital gains exemption, you can read the discussion on Capital gain exemption
==> I have a friend who owns a house free and clear. He is in need of money.....
As he is your friend you can advice him to take a mortgage for meeting his financial requirements instead of selling it to you. That could be easier for him.
As he is your friend you can advice him to take a mortgage for meeting his financial requirements instead of selling it to you. That could be easier for him.