Posted on: 23rd May, 2007 07:21 am
i have a foreign corporation that owns a piece of land free and clear. they would like to quit claim deed it to another corporation in the us. what implications would this have for the grantor and grantee? who would be responsible for the upkeep, taxes, etc?
is there a minimum amount that should be put as value on the quit claim deed? does the grantor have to pay taxes on the property if they give it to the other corporation as a gift?
please advise.
is there a minimum amount that should be put as value on the quit claim deed? does the grantor have to pay taxes on the property if they give it to the other corporation as a gift?
please advise.
After the land is quit claimed to US based corporation all the payments/expenses (like upkeep, taxes) related to that land will be the responsibility of the US concern.
And depending on the value of the land, grantor does have to pay gift taxes if value of the gift exceeds gift tax exemption limit.
And depending on the value of the land, grantor does have to pay gift taxes if value of the gift exceeds gift tax exemption limit.
Hi Olga,
Welcome to forums.
Whether you need to put a minimum value on the quitclaim deed will depend upon how you want to carry out the transaction. At times, people do seek a monetary consideration from the grantee who receives the property-interest through the quitclaim deed.
The grantor may have to pay taxes depending upon the value of the land quitclaimed. Also, what matters is whether the grantor qualifies for the life time gift tax exemption. Just refer to a previous discussion on Gift tax and Exemption limits and that will help you get an idea of the gift tax.
Take Care
Welcome to forums.
Whether you need to put a minimum value on the quitclaim deed will depend upon how you want to carry out the transaction. At times, people do seek a monetary consideration from the grantee who receives the property-interest through the quitclaim deed.
The grantor may have to pay taxes depending upon the value of the land quitclaimed. Also, what matters is whether the grantor qualifies for the life time gift tax exemption. Just refer to a previous discussion on Gift tax and Exemption limits and that will help you get an idea of the gift tax.
Take Care