Posted on: 22nd Feb, 2007 02:52 pm
If I have a tax lien, can I quick claim my half of a property to my unrelated domestic partner? If so what are the tax implications?
Let me tell you that if IRS has filed a nominee lien notice (or notice of federal tax lien) then your partner would have the liability of paying the tax lien after getting the property from you.
In addition by quit claiming it to your domestic partner you will have to pay applicable gift taxes if the property value exceeds the exemption limit. The exemption limit is $12,000 per year per person. But you may not have to pay any tax if you do not cross the $1 million lifetime gift exemption.
In addition by quit claiming it to your domestic partner you will have to pay applicable gift taxes if the property value exceeds the exemption limit. The exemption limit is $12,000 per year per person. But you may not have to pay any tax if you do not cross the $1 million lifetime gift exemption.
As Wadsworth said tax lien is over the property and whoever gets ownership from you would have to pay the tax. Otherwise court may sell the property for recovery of the amount.
Hi Kindred-souls,
You can quit claim property to your domestic partner but I think your partner will have to pay the taxes to remove the lien. Otherwise, you will have to remove the lien and then quitclaim.
Thanks,
Sara
You can quit claim property to your domestic partner but I think your partner will have to pay the taxes to remove the lien. Otherwise, you will have to remove the lien and then quitclaim.
Thanks,
Sara