What are the tax implications of quit claim deed?

OUR CONDO ASSN. HAS A 3 YEAR RENTAL POLICY. AN OWNER HAS RENTED HIS UNIT FOR 3 YEARS AND NOW HAS QUIT CLAIMED THE UNIT TO HIS DAUGHTER SO SHE CAN RENT IT OUT FOR 3 YEARS. NOW HER 3 YEARS ARE UP. CAN SHE NOW QUIT CLAIM THE UNIT BACK TO HER FATHER TO RENT AGAIN FOR 3 YEARS? OR HAS HIS RENTAL TIME EXPIRED?

I think it can be done no harm in it.

That question should be addressed by the HOA

If an unmarried couple purchased a home together (both names are on mortgage) and now want to split up, can he retain the mortgage and assign his ex girl friend's ownership and attendant mortgage debt via a quit claim to say, his parents.

you can't assign the mortgage debt. you can quit claim her off the title....she would have to sign that form......and then refinance into your name. if there is equity in the home why would she want to walk away from that? any changes to title will have to have her or her estates approval. i would suggest that you refi and get the mortgage into you own name asap if something where to happen to her her estate could prevent you from even selling the place.

hi ja,

welcome to mortgagefit forums.

you can't transfer a mortgage through quit claim deed. refinance is the possible option that you have to transfer the mortgage.

but as cedric mentioned that her approval is required for the transfer.

god bless you.

for mortgagefit,
samantha

My husband and I co-signed for our daughter's home and, of course, our newly purchased home became collateral. Now we would like to be removed from our daughter's mortgage. Is Quit Claim Deed the way to do it? Thank you for your quick reply.

No through quit claim deed only the interest on the title gets transferred not the mortgage.

Zeal_Deal

hi nancy,

you cannot remove your name from the mortgage through the quit claim deed. but yes, you can definitely transfer liability of paying off the mortgage to your daughter - the process being called novation. you need the lender's approval for the novation. and, as far as the quit claim is concerned, it will just allow you to transfer your share of property interest to someone else.

thanks,

caron.

Do we need a quit claim deed if, we were doing a last will and testimony..And both house are still only in my partners, name (not my husband) but we have a child together, and just in case anything is to happen to him...(God, forbid) Also, this is just to protect us, and the houses still have open loans, on them. How does this quit claim deed work in this case?

I guess my question would be, "If in time of an accidental death occured, would a quit claim deed be the Legal form to have in order, in order to prevent the propert from being handed over to the Mortgage Co. and the property to remain with Me. I am not on the loan itself, and we are doing a last will.. This way his family doesn't fight for property and property remains with me untill loan is payed off?

Hi,

As per my knowledge, the quit claim deed can allow you to share the property interest and not the title of ownership. It is the will that should have your name if you are to be its owner.

In case of any accidental death, the quit claim cannot be the legal form. It has to be the will as the evidence of your name on the title. And, the mortgage has to be paid off in time if you don't want to lose the property. Your name may be on the will also, but if you don't make timely payments, you can very well lose the house.

Thanks,

Jerry.

Hi guest,

I don't think you need to do a quit claim deed just to prevent your property being taken over by the company.

Your name may not be on the loan document right now, but I guess your name may be on the will. In that case, you do have the liability of repaying the mortgage after the actual borrower dies. This is because, the will acts as the evidence of your rights as the owner of the property. And, his family does not have the right to fight for the property, after all, their names aren't on the will.

I guess your partner is making the payments in time, so why worry and anticipate over sad incidents like death. Be positive and have faith in God.

Let's hope for the best.

Thanks,

Caron.

my wife's dad wants to quick deed land with a house on it for payment of back pay and property improvements that have come from us. The assessed value of the property is $59,000. Is there a limit on his gift and our tax capital gains? Do we need documents to prove unpaid labor when the tax crunch comes?

Hi Eugene,

Welcome to Mortgagefit Forums.

In case of a quit claim, the land may be considered as a gift to you. Since the value is over $11,000 which is per pension gift limit, so form (706 or 709) needs to be filed with the taxes which states to consider the excess amount of the gift as part of $1 million lifetime gift exemption.

Under that condition you will have to pay the capital gain taxes on it when the land is sold. Providing the documents is always necessary and you should remain prepared for that.

You may contact your tax advisor for more details.

God bless you.

For MortgageFit,
Samantha