What are the tax implications of quit claim deed?

Hi Diane,

I agree with Larry here. A ladybird deed does allow you to avoid probate. But if there is already a Will prepared, then your aunt needs to cancel the Will because a deed has been signed for the purpose.

What deed has been used by the way? If your aunt wants to add your name to the property, it is similar to giving away a part of her share of interest in property to you. However, if your aunt wants you to inherit the property, then using a ladybird deed make sense, because you never know, when someone comes forward and says he claims your aunt's property. And then merely a quitclaim deed won't protect your interest but a ladybird deed could help then.

Take Care

What happens if parents die and a quit claim deed has been signed by 1 sibling and not the other? Is the one who didn't sign not eligible for any proceeds from the sale of the house if the parents die intestate.

Hi Myra,

Welcome to the forum.

Your sibling is a grantee here. So you need to check to whom your parents quitclaimed the property. If you name is also there on the deed as a grantee then you are also an owner of the property even though you have not signed the deed, because grantee's sign is not important in every state.

I you should contact with an attorney and review the deed with him.

Best of luck,
Larry

I was wondering if there is any thing that i could do here, My dad Did a Qiuck deed and put property in my name and then this property was sold, with the money, my dad paid off the loan that was on the property. Now the IRS is showing that i Made a Gross profit because the Land was in my name and the Loan was still in my dads name. is there any way to reverse the Quick deed

Hi,

I've already shared my views at http://www.mortgagefit.com/quitclaim/reversedeed-cancelprofit.html . Please have a look.

Thanks.

I had a couple quitclaim a deed to their house to me but we are planning to do a short sale. The bank has been paying the taxes. Do I need to pay taxes on this house? We will just lease it out until the bank makes us an offer so we can get the mortgage reduced. The owners had no equity and have not paid their mortgage for about 2 years. Their bankruptcy is discharged already but the bank has not foreclosed yet.

I want to quit claim condo I own to my daughter. We both live in CT. The condo has a Fair Market value of $225,000. What is the State Tax implications for me. Is there a gift tax to me.

Hi Gloria,

If the property is in your name, then you will be liable for paying the taxes on that property as per my opinion. You can contact a real estate attorney and take his opinion in this matter. He will guide you further in this regard.

Hi Dee,

If you quitclaim the condo to your daughter as a gift, then you will be liable for paying gift taxes. However, you will be able to get a gift tax exemption of $13,000.

Thanks

i know this is an old topic, but i have a situation that's relevant. when my wife and i purchased our home 3 years ago, we had to have her parents co-sign for the loan, for us to qualify. they were, however, never intended to be on the actual title of the home, just the loan. when we closed, however, the titling company messed up and put them on our title as well.

fast forward to 3 years later, and we're now qualified to refinance without them on the loan. we also want to have their names removed from the title, since they have no ownership of the home. we're being told we need to figure out what kind of deed we need, so they can prepare it, to remove their names from the title. they gave us the options of warranty, gift of deed, and quitclaim. any advice on this situation would be helpful, especially regarding tax implications down the road. i'm worried about a gift deed meaning that we have to report the 'gift' as taxable income (even though our names are on the original deed as well).

Hi Joe!

Welcome to forums!

As far as I know, you need to use a quitclaim deed in order to get the property transferred in your name. Nevertheless, you can contact a real estate attorney and he will help you in this regard.

Feel free to ask if you've further queries.

Sussane

Around 1980 my in-laws did a quitclaim deed on their house adding my husband, his brother and sister to the deed. We found out about it when my mother-in-law died in 2001. His dad died in 2010 and now I wonder how this house is to be handled. It is located in Massachusetts and we live in Washington state.

We want to sell as my husband, age 64, is ill with Alzheimer's and we need whatever funds we can get from it. His sister is also ill with Alzheimer's and her daughter is her guardian. His brother refuses to sell the house as he has things stored there (doesn't live there though) plus won't let us into the house. Last I looked his brother had not notified the county/state because the parents and children are named as owners.

My question is: when it is sold, what are the tax implications? We live off SSDI so have low income as does his sister. Is there capital gains that will have to be paid on it? We figure our share will be $40-50,000. If so, will the value be based on when the quitclaim deed was done or when their dad died?

Hi CharB,

When the property is sold off, all of you will be liable for paying capital gains taxes depending upon the amount of profit you make. As far as I know, the amount will be based on the price of the property when the quitclaim deed was done.

Thanks

Hey CharB,

You can try to sell your share in the home to your brother since it seems that you don't want it anymore and he has use for it. Talk to him to buy you out, that way you recieve your share in equity and he gets 66% of the house instead of 33%. Also, as jamesshogg states, all 3 of you will have to pay capital gain taxes if all of you decide to sell.

My mother and I co own a home with rights of survivor ship. Since that purchase was made, I got married. Now, we're all in agreement to take my mother off the deed and add my wife.
There will be no exchange of money since I'm already on the deed and we're basically exchanging one person for another.
Is there any gift, or transfer tax involved?
Also, mortgage is in my name, so my wife is not assuming any debt.
I'm in the state of Michigan.

Hi joey,

As far as I can understand, there will be a gift tax and transfer tax. Nevertheless, it will be better if you could contact a real estate attorney and take his opinion in this regard.