Posted on: 05th Sep, 2006 09:11 am
my husband in 1995 bought a condo in florida. at the closing his girlfriend started a rather huge crying episode to have him put her name on the deed. in 2001 they parted ways and he continued to make the payment. in 2006 through arbitration they had to bid on the property as both wanted it. he won the bid. the proceeds of the property are to be split 50/50, but instead of doing a traditional warranty deed she is forcing an issue to do a quit claim deed. i feel it is to advoid paying her share of the capital gain tax. what should we do? thanks, carol
Hi Carol,
Quit claim deed if properly recorded is also effective in transferring the 50 percent share to her.
I think you can opt for a quit claim deed instead of the warranty deed, but do get it notarized and recorded properly to be valid in term of any future claims as on to the validity of the deed.
Thanks
Quit claim deed if properly recorded is also effective in transferring the 50 percent share to her.
I think you can opt for a quit claim deed instead of the warranty deed, but do get it notarized and recorded properly to be valid in term of any future claims as on to the validity of the deed.
Thanks
Hi,
As far as I know the capital gain taxes would be coming in to consideration if the property is being sold and not if it is transferred by way of a warranty deed.
Thanks.
As far as I know the capital gain taxes would be coming in to consideration if the property is being sold and not if it is transferred by way of a warranty deed.
Thanks.
Hi Carol,
I don't think the girl friend wants to avoid capital gains tax. Rather she wants to sign a quit claim deed, as this kind of deed will not give any guarantee regarding any other person's share in the condo. So, as time passes on, she can very well claim that she has an interest in the property.
The warranty deed is the best deed for the transfer of ownership rights as after it is signed, none other than the owners can claim any share of interest in the property. The deed guarantees the transfer of interest in property.
Capital gains tax cannot be avoided even if she signs a warranty deed because such taxes are charged on the profit obtained when someone sells the property.
Know more on Capital gains tax from a previous discussion.
Feel free to clarify your doubts.
Thanks,
Caron.
I don't think the girl friend wants to avoid capital gains tax. Rather she wants to sign a quit claim deed, as this kind of deed will not give any guarantee regarding any other person's share in the condo. So, as time passes on, she can very well claim that she has an interest in the property.
The warranty deed is the best deed for the transfer of ownership rights as after it is signed, none other than the owners can claim any share of interest in the property. The deed guarantees the transfer of interest in property.
Capital gains tax cannot be avoided even if she signs a warranty deed because such taxes are charged on the profit obtained when someone sells the property.
Know more on Capital gains tax from a previous discussion.
Feel free to clarify your doubts.
Thanks,
Caron.