What are the tax implications of quit claim deed?

Hi Dee,

Welcome to the forums.

I think you have been cheated regarding this short sale process. Once you have transferred your rights by signing legal papers, you cannot have any rights on the property. I would suggest that you consult an attorney immediately and find out if you can take any legal action in this matter.

Hope you can get through this problem as soon as possible.

Please feel free to clarify if you have any other query.

Regards,

Jessica.

my fiancee quit claim deed on a townhome four years ago. he wrote the guy a check for an amount and signed the quit claim deed. four years later (now) he finds out there is a loan on the house along with the home equity loan he took out. is he responsible for this 30 year old loan?

what can we do so he is not responsible? contact the az district attornet? contact irs???

Hi,

I don't think your fiancee is responsible for the second loan because he has not signed the legal document for the loan. If he hasn't taken the loan in his name, how can he be responsible for the payments. But your fiancee is definitely responsible for paying off the home equity loan which has his name on the note.

I shall suggest that your fiancee should talk to this guy and try to convince him that he is not liable to pay off the 30 year loan. And, tell him to contact an attorney as soon as possible for any further course of action.

Thanks,

Caron.

why would someone quick claim property to themselfs

Thats interesting, as why someone would transfer the property to himself. sound fishy...

In the state of Virginia, the city said that i must put an exemption on the quit claim deed and thet would determine my tax obligation. I have covered the codes and I just can't figure out the right one to reference. My husband signed and gave me the quit claim deed and I need to get it recorded. No money was exchanged, and it has and is my son's and my home for 6 years. Can you help me on what exemption I must put down so as to pay nothing for taxes, since I pay it with my Mortgage. Thanks, DEbbie

Hi Debbie,

There are some exemptions allowed in transfers between couples or from parents to children without any money exchange.

You must consult a real estate tax advisor or a real estate attorney for the amount of exemption that you can get and the possible way to get it.

James

My Wife and I are in our mid 80's, and we wish to give our property to our children (3), but do not wish to go thru the Title search, ect., ect, ect. We intend to live in the place until we no longer need it, paying taxes upkeep and so on. At our age something could happen at any time, making it possible for the children to go to the title co on our demise and take care of the change over. The place is free and clear, with no liens or other claims against it.

Hi Roy,

It will largely depend on how you want to keep the property. I shall suggest you to set up an estate living trust and thus you can stay there during your life time and the property will be distributed to your heirs after you and your wife.

Get the trust prepared under an attorney. You can seek his assistance also to check for the best alternative.

Thank you for the prompt answer. We have checked with an advisor, and our property is not worth enough to go the living trust way(according to him), since it will be less than $150,000. Does your answer still apply?
Our State is AZ!!!!!
Many thanks.

Hi,

I can understand the expense for setting up the trust becomes a little higher in this case compared to the value of the property.

I think in that case you can opt for opening a payable-on-death bank account. This type of property ownership consists of a bank account that is held in trust for a named beneficiary. You can check for it with the banks in your area.

Regards,
Blue

Long story short...Husband/Wife are considering adding (his) brother to a property. What then is the percent of ownership to all involved?

Hi,

Welcome to our forums.

It depends on what percentage of share of the property you wish to give away to your brother. It's up to you as to how much property you and your wife intend to keep after adding your brother to the property. So, you will have to take the final decision here and based on that you will have to prepare the legal papers.

Thanks,

Caron.

My husband's brother wants to be added as a owner to our property by purchasing it with a dollar $1 to avoid a gift tax if so, will his brother get to use the property as a write off for taxes? I talked to a CPA but the scenerio was just slightly different i.e. Brother was just going to be quick claim/deed & because loan is just in our name...then his write off would only be the taxes which aren't included in the mortgage payment. Is this true? Thanks!

Hi,

As far as I know, your husband's brother will get a write off for taxes which are not included in the mortgage payments as the mortgage is not in his name.

Thanks,
Jerry.