Posted on: 26th Jun, 2007 06:49 pm
For a property which is owned by 2 unrelated people as joint tenants, if one of them wants to have his name removed from the deed, can this be done with a quitcalim? The mortgage for the property has been paid off. Will there be any tax implications for either party?
Yes that can be done Darby. As there is no mortgage there will not be any problem with it. The person who will be giving up his rights is known as the grantor. And if he is not receiving an amount which is equal to current value of his share in the house then it will be considered as a gift being made to the other person (the grantee).
The grantor may have to pay gift taxes if the applicable gift tax exemption limits are crossed.
Miller
The grantor may have to pay gift taxes if the applicable gift tax exemption limits are crossed.
Miller
Hi Darby,
Welcome to Mortgagefit discussion board.
Let me tell you something about the taxes that the grantor may have to pay and the exemptions available.
If the value of gift is not more than $12,000 which is the annual gift tax exemption limit then there is no problem with the transfer. If however the amount of gift is more than this limit then grantor has to check if his lifetime gift tax exemption limit of $1 million has been crossed or not. If that limit is still not being crossed then there are no gift taxes for the grantor to pay.
Read more about tax implications of quit claim deeds from here: http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
Let me tell you something about the taxes that the grantor may have to pay and the exemptions available.
If the value of gift is not more than $12,000 which is the annual gift tax exemption limit then there is no problem with the transfer. If however the amount of gift is more than this limit then grantor has to check if his lifetime gift tax exemption limit of $1 million has been crossed or not. If that limit is still not being crossed then there are no gift taxes for the grantor to pay.
Read more about tax implications of quit claim deeds from here: http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
Do let me know if you have any other questions.
Thanks
Blue
Hello Darby,
You can easily remove your name from the joint ownership of the property through a quitclaim deed. But in that case it may be considered as a gift. And as a donor, you may have to pay the gift tax if you do not qualify for the gift tax exemption as specified by Blue.
You can easily remove your name from the joint ownership of the property through a quitclaim deed. But in that case it may be considered as a gift. And as a donor, you may have to pay the gift tax if you do not qualify for the gift tax exemption as specified by Blue.
"For a property which is owned by 2 unrelated people as joint tenants, if one of them wants to have his name removed from the deed, can this be done with a quitcalim? The mortgage for the property has been paid off. Will there be any tax implications for either party?"
At the time of property transfer the person receiving the ownership (grantee) doesn't have to pay any taxes. And as there is no mortgage a warranty can also be used for the title transfer.
At the time of property transfer the person receiving the ownership (grantee) doesn't have to pay any taxes. And as there is no mortgage a warranty can also be used for the title transfer.