Posted on: 11th Mar, 2007 08:42 pm
After my father passed away ,my mother did not want to live alone so we
sold our home and she sold hers we put our money together and bought one large enough for all of us . all of our names are on the title, myself my husbands and my mother . she is now getting on in age and wants to quit claim her share over to us. My question is this if see dose this will we
owe some type of gift taxes or capital gains or something or will she just
go off the deed and that be it since we are already on the title, we live in California
sold our home and she sold hers we put our money together and bought one large enough for all of us . all of our names are on the title, myself my husbands and my mother . she is now getting on in age and wants to quit claim her share over to us. My question is this if see dose this will we
owe some type of gift taxes or capital gains or something or will she just
go off the deed and that be it since we are already on the title, we live in California
hi blondie,
welcome to forums.
your mother can use quit claim deed to take her name off the title. this means, she will be transferring her share of interest in property to you and your husband. since this is a transfer involving no money between you all, therefore, it is considered as gift.
your mother may have to pay gift tax on the value of the part of property transferred to you all. but there is a pre-determined exemption limit due to which anyone transferring property as gift can avoid paying taxes on the first $12,000 of the property value.
thus your mother will have to pay taxes on the remaining part of the gift. however, she may still avoid doing that provided she fulfills the other exemption limit.
refer to discussion on gift tax to know more on gift tax exemption.
thanks,
james.
welcome to forums.
your mother can use quit claim deed to take her name off the title. this means, she will be transferring her share of interest in property to you and your husband. since this is a transfer involving no money between you all, therefore, it is considered as gift.
your mother may have to pay gift tax on the value of the part of property transferred to you all. but there is a pre-determined exemption limit due to which anyone transferring property as gift can avoid paying taxes on the first $12,000 of the property value.
thus your mother will have to pay taxes on the remaining part of the gift. however, she may still avoid doing that provided she fulfills the other exemption limit.
refer to discussion on gift tax to know more on gift tax exemption.
thanks,
james.
Thanks for your quick response, So what you are saying is as long as her
portion is worth less than 1.000000 and she has never gifted up to that amount in her lifetime we will be ok? No tax will be due?
portion is worth less than 1.000000 and she has never gifted up to that amount in her lifetime we will be ok? No tax will be due?
Blondie,
As long as the portion of property gifted does not exceed $12,000 and if your mother hasn't gifted property having value up to $1,00,000 in total till now in her lifetime, then she need not pay any gift tax.
As long as the portion of property gifted does not exceed $12,000 and if your mother hasn't gifted property having value up to $1,00,000 in total till now in her lifetime, then she need not pay any gift tax.