Posted on: 25th Sep, 2010 11:00 pm
hi, i would like to ask few questions:
due to my parents' financial hardship, i have paid their mortgage more than a year, and i think it might be good to refinance mortgage using my name so i can get more tax deduction and better interest rate.
my father is only one who is on deed, and i want to add my name to it and immediately refinance the mortgage.
i do not live with them, so it's not my primary house. i have no plan to cash out. is this possible?
also, i believe this may trigger gift tax; if so, then which price becomes basis when the current price is below than when my parents purchased the home? (what i know is basis should be the price when my parents purchased the home, but just wonder ... )
thank you very much for your help.
due to my parents' financial hardship, i have paid their mortgage more than a year, and i think it might be good to refinance mortgage using my name so i can get more tax deduction and better interest rate.
my father is only one who is on deed, and i want to add my name to it and immediately refinance the mortgage.
i do not live with them, so it's not my primary house. i have no plan to cash out. is this possible?
also, i believe this may trigger gift tax; if so, then which price becomes basis when the current price is below than when my parents purchased the home? (what i know is basis should be the price when my parents purchased the home, but just wonder ... )
thank you very much for your help.
welcome filterspm,
you can ask your father to sign a quit claim deed and add your name to the property. though it will be your second home, you will be able to refinance the loan and don't have to take a cash out. you father will be liable for paying gift taxes, if any. there is a life time gift tax exemption of $1 million.
you can ask your father to sign a quit claim deed and add your name to the property. though it will be your second home, you will be able to refinance the loan and don't have to take a cash out. you father will be liable for paying gift taxes, if any. there is a life time gift tax exemption of $1 million.
Yes it's 100% possible. Your father will need to sign a quit claim deed and add you to the property. Then he'll refinance the home and add you as a co-signor to the mortgage. And from what I see that's exactly what ADONIS wrote...ha! Long day already!
