Posted on: 28th Dec, 2005 09:16 am
What are the tax implications of a Quit Claim? Who pays the property tax?
Thank you.
Thank you.
I own a house that I bought with a long term loan and still I owe a large percentage of my loan. I am considering to transfer my property to my grandaughter. I am thinking in a Quick Claim Deed or in a Trust (revocable or irrevocable) to do this. Any ideas on this, please?
I hope I am doing the right thing posting a question in this Quick Reply resource.
I hope I am doing the right thing posting a question in this Quick Reply resource.
Hi JS,
You are always welcome to post your queries with us. We will be happy if we can help you in any way.
You can transfer the property to your grand-daughter through a quit claim deed. The process is same if you want to transfer it to a Trust.
The decision depends on you how you want to keep the property. I shall suggest you to seek the guidance of an attorney before you make any such transfers.
An important thing to note is that you must inform your lender about the transfer. You can get more information on revocable trust here. I hope it will help.
Feel free to ask if you have any more queries.
God bless you.
For MortgageFit,
Samantha
You are always welcome to post your queries with us. We will be happy if we can help you in any way.
You can transfer the property to your grand-daughter through a quit claim deed. The process is same if you want to transfer it to a Trust.
The decision depends on you how you want to keep the property. I shall suggest you to seek the guidance of an attorney before you make any such transfers.
An important thing to note is that you must inform your lender about the transfer. You can get more information on revocable trust here. I hope it will help.
Feel free to ask if you have any more queries.
God bless you.
For MortgageFit,
Samantha
Thanks Samantha for your quick reply to my previous message.
If I, being a foreigner, transfer my property in usa to my grandaughter (11 years old), who is americanborn, for example using a quit claim deed, or a trust deed, might be revocable or irrevocable, will she be subject to income tax if the property is rented and the rent is used for educational purposes and or expenses of my grandaughter?
If I, being a foreigner, transfer my property in usa to my grandaughter (11 years old), who is americanborn, for example using a quit claim deed, or a trust deed, might be revocable or irrevocable, will she be subject to income tax if the property is rented and the rent is used for educational purposes and or expenses of my grandaughter?
Hi JS,
Welcome again.
Incomes from rent are to be reported with the gross income and the tax is calculated on it. The expenses made towards renting the property can be deducted from the income.
I would suggest you to consult a professional tax advisor or a real estate lawyer on how the tax can be avoided from this income. As I am not from the legal field, it won't be appropriate for me to make any specific comments here.
Feel free to ask if you any more queries. I will be happy if I can help you in some way.
God bless you.
For MortgageFit,
Samantha
Welcome again.
Incomes from rent are to be reported with the gross income and the tax is calculated on it. The expenses made towards renting the property can be deducted from the income.
I would suggest you to consult a professional tax advisor or a real estate lawyer on how the tax can be avoided from this income. As I am not from the legal field, it won't be appropriate for me to make any specific comments here.
Feel free to ask if you any more queries. I will be happy if I can help you in some way.
God bless you.
For MortgageFit,
Samantha
My grandmother wants to give her home to me as a gift. The home is paid for. How can this be accomplished?
Hi Dallen,
Your grandmother can prepare a deed and transfer her interests in the property to you. But do consult an attorney for the preparation of the deed and to know about the related tax involved.
Feel free to ask if you have further doubts.
Blue
Your grandmother can prepare a deed and transfer her interests in the property to you. But do consult an attorney for the preparation of the deed and to know about the related tax involved.
Feel free to ask if you have further doubts.
Blue
Hi Dallen,
As Blue said you must consult an attorney for the purpose as it will have two way benefits. First you will be able to get a clear interest ownership to the title under his guidance.
Second your grandmother can avoid any penalties to the IRS. An appraisal is the very first step required for the property.
That will help to know the fractional interest equal to the annual exclusion amount that can be gifted. For your information the amount that can be excluded is $11,000 per person.
Hope that gives an idea.
Angel
As Blue said you must consult an attorney for the purpose as it will have two way benefits. First you will be able to get a clear interest ownership to the title under his guidance.
Second your grandmother can avoid any penalties to the IRS. An appraisal is the very first step required for the property.
That will help to know the fractional interest equal to the annual exclusion amount that can be gifted. For your information the amount that can be excluded is $11,000 per person.
Hope that gives an idea.
Angel
If I quit claim the property to another person, am I financially responsible if they default on the loan
Hi Deann,
If you quit claim the property to another person, you are still liable for the payment of the loan.
Quit claim only transfers the share of interest to another person. Whereas the title of the property still remain same. Since, you are in the title of the property so any default in payment makes you the liable person.
But if you are thinking for transferring the title of the property then you have to go for title deed. For that you need to first contact an attorney to prepare the papers of the deed. Then, sign the deed with notary public as witness. Make the deed public by recording it at the Office of the Registrar.
Thanks
If you quit claim the property to another person, you are still liable for the payment of the loan.
Quit claim only transfers the share of interest to another person. Whereas the title of the property still remain same. Since, you are in the title of the property so any default in payment makes you the liable person.
But if you are thinking for transferring the title of the property then you have to go for title deed. For that you need to first contact an attorney to prepare the papers of the deed. Then, sign the deed with notary public as witness. Make the deed public by recording it at the Office of the Registrar.
Thanks
our landloard wants to give us the house/property. she is older and has no real involved family. we feel we need to secure our investment in the property, due to fixing up and maintenance monies put into the property already and in the future. is a quick/ quit claim deed the way to go. she does still have a mortgage. how does the deed affect the mortgage, if at all? do you suggest a lawyer to take us through the process.
thanks
thanks
Hi, Lisa
Looks ok to me, but few things you should clear up before going to the deal.
1st is when her loan will be paid off as quit claim deed only transfers the interest not the mortgage and it would be better to take any lawyer or attorney help as they will be able to guide you better.
Looks ok to me, but few things you should clear up before going to the deal.
1st is when her loan will be paid off as quit claim deed only transfers the interest not the mortgage and it would be better to take any lawyer or attorney help as they will be able to guide you better.
Hi Lisa,
Let me explain the various facts.
"We feel we need to secure our investment in the property, due to fixing up and maintenance monies put into the property already and in the future. Is a quick/ quit claim deed the way to go. She does still have a mortgage."
You are thinking of to make it as a secure investment. But I don't think that quit claim deed is right way to do.
Because through the quit claim deed you can only transfer the share of interest of the property into yours name. But one point is here to keep in mind, since the property still have a mortgage so in that no liability will come on you in case of any default in the payment. Since, your name is not in title.
But to make the investment secured you should think to add your name on the title of the property. And for that you need to contact an attorney and go for the title deed.
Now, it's very much important for you think in a cool mind and decide what to do? It should be completely your decision.
Thanks
Let me explain the various facts.
"We feel we need to secure our investment in the property, due to fixing up and maintenance monies put into the property already and in the future. Is a quick/ quit claim deed the way to go. She does still have a mortgage."
You are thinking of to make it as a secure investment. But I don't think that quit claim deed is right way to do.
Because through the quit claim deed you can only transfer the share of interest of the property into yours name. But one point is here to keep in mind, since the property still have a mortgage so in that no liability will come on you in case of any default in the payment. Since, your name is not in title.
But to make the investment secured you should think to add your name on the title of the property. And for that you need to contact an attorney and go for the title deed.
Now, it's very much important for you think in a cool mind and decide what to do? It should be completely your decision.
Thanks
On the Quit Claim form who is the grantee, who is the Grantor? I am trying to remove my name from a time share that I own with my ex husband but I'm not understanding the form. It asks for me to fill in Grantor and Grantee on the form. if my exhusbands name is still going to be on the timeshare, who would he be?
Hi Amy
On the Quit claim deed form, property for transferring only that interest belonging to the seller is the grantor. When a seller (Grantor) quit claims, then all the rights or interest in the property are transferred to the buyer (Grantee).
In your case, you become the Grantor and your Ex-Husband the Grantee.
Thanks
On the Quit claim deed form, property for transferring only that interest belonging to the seller is the grantor. When a seller (Grantor) quit claims, then all the rights or interest in the property are transferred to the buyer (Grantee).
In your case, you become the Grantor and your Ex-Husband the Grantee.
Thanks
our house is in foreclosure so we decided to do a short sale i found out that we sign our house over but they made us to believe that we still have rights to the house is there anyway we can get our house back in our name they had really took advantage of us