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Tax implication when selling property after quit claim deed

Posted on: 04th Apr, 2006 12:58 am
I bought a property 1 year ago. I quit claimed the property after owning it about 2 months to my sister as a gift so she can have ownership on the house. The loan is under my name and she has been paying mortgage on it.

She is thinking of selling the place now. What is the tax implication of the sale? Since the deed is now under her name, would she be the one responsible for paying tax on the gain from the sale of the property or do i have to report the gain also on my income tax return at the end of the year? My name is no longer in the deed since I quit claimed it to her about 1 year ago.

Thanks,

Wonder
Depending upon the profit that you make from the sale of the property, you would be liable for paying the capital gains taxes. You can have a word with a tax expert and he will let you know further in this regard.
Posted on: 31st Mar, 2010 03:51 am
who is responsible to pay the property taxes after a quit claim deed has been signed? Is it the granter or the grantee's responsibility?
Posted on: 12th Aug, 2010 06:00 pm
Welcome dagi,

Once the property is transferred to the grantee, then it becomes his or her responsibility to pay the property taxes.
Posted on: 12th Aug, 2010 10:56 pm
if a mother did a quit claim deed with her two daughters so that now all three of them are on the deed in equal proportion what are the tax implications if they sell the house that the mother has lived in for decades.
Posted on: 06th Oct, 2010 11:41 am
Hi Bear!

Welcome to forums!

Though the mother has lived in the property for decades, all 3 of them are on the property deed. Thus, all 3 of them will be liable for capital gains tax if they receive any profit from the sale of the property.

Feel free to ask if you've further queries.

Sussane
Posted on: 07th Oct, 2010 02:35 am
i would like to add my daighter's name to my deed. Is there a gift tax involved?
Posted on: 10th May, 2011 04:10 pm
Hi scottand,

If you transfer your share of the property to your daughter as a gift, then you will be liable for paying gift taxes. You should contact a CPA and he will guide you further in this matter.

Thanks
Posted on: 10th May, 2011 11:51 pm
I own a house worth 175,000 and it is paid for. I want to gift (quick claim deed) to my daughter. Do I have to pay capoital gains tax on the value of the home? Or would my daughter have to pay capital gains tax if she sold the property?
Posted on: 12th May, 2011 07:34 pm
Welcome juli,

As you're gifting the property to your daughter, you will be liable for paying gift tax. You won't have to pay any capital gains taxes. You will pay capital gains tax if you sell off your property to someone and receive a profit from it.
Posted on: 12th May, 2011 11:01 pm
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