Posted on: 03rd Aug, 2009 04:36 pm
I am trying to quit claim a property to a friend. I owe 500k (mortgage) on the property which is also what I paid for it a few years ago. The property is valued at 250k now. The friend is willing to pay off the 500k which I owe. Will I be responsible for the 250K difference/gain for tax purposes?
Also is the friend going to pay property tax on 250K or 500k.
thanks.
Also is the friend going to pay property tax on 250K or 500k.
thanks.
how are you going to pay tax on a property that has lost value? it sure isn't a gain...i don't get your question in that regard.
property taxes are based on valuation by the taxing authority in the locale where the property is - that is something to be decided.
property taxes are based on valuation by the taxing authority in the locale where the property is - that is something to be decided.
dms_r
If you can show that you borroed money from your friend then it is not an income.
Good luck and feel free to ask
If you can show that you borroed money from your friend then it is not an income.
Good luck and feel free to ask
thanks, both responses are helpful.