Posted on: 03rd Nov, 2010 02:37 pm
here's the situation.
my uncle owns a condo in california and cannot afford to keep it. he wants to give me the condo. so, my questions are.... is there a gift tax for him giving me the condo? should he just add my name to the deed then i do a quit claim deed to remove it so there is no tax problems with him just giving it to me? also, he only owes $17,000 on his condo and i am going to take over how do i tackle that. meaning, how can i take over his payments or do i need to get a loan for that amount and pay his existing loan off? help!!
my uncle owns a condo in california and cannot afford to keep it. he wants to give me the condo. so, my questions are.... is there a gift tax for him giving me the condo? should he just add my name to the deed then i do a quit claim deed to remove it so there is no tax problems with him just giving it to me? also, he only owes $17,000 on his condo and i am going to take over how do i tackle that. meaning, how can i take over his payments or do i need to get a loan for that amount and pay his existing loan off? help!!
hi lanileisc,
welcome to mortgage fit,
your uncle need to pay the gift tax if he has already exceeded the life time limit of gift amount $ 1,000,000.for an individual yearly limit for the gift tax is $ 13,000.that means he can gift the valuable up to $ 13,000 to any person/s in a financial year.as far as married couple is concerned this value increases to $ 26 k.
once he quitclaim the property to you, you only have to pay the installments of the loan.because just for the $ 17k lender is surely not going to ask to refinance the loan.
but if lender ask to do so you may have to go for refinance.
feel free to ask any further query if you have..........
dipa
welcome to mortgage fit,
your uncle need to pay the gift tax if he has already exceeded the life time limit of gift amount $ 1,000,000.for an individual yearly limit for the gift tax is $ 13,000.that means he can gift the valuable up to $ 13,000 to any person/s in a financial year.as far as married couple is concerned this value increases to $ 26 k.
once he quitclaim the property to you, you only have to pay the installments of the loan.because just for the $ 17k lender is surely not going to ask to refinance the loan.
but if lender ask to do so you may have to go for refinance.
feel free to ask any further query if you have..........
dipa