Posted on: 07th Nov, 2006 11:10 am
i own a home in queens new york since 1985 with an estimated price of $700,000. it has been totally (in my income tax) depreciated, i owe $220,000 on it. i want to transfer it to my nephew thru a quit claim deed, he has a preapproved mortagage for the $220.000. question is, do i have to pay capital gains taxes on this next year or ever, or any other state taxes or fees?
thanks
thanks
If you quit claim the home to your nephew then the gift tax will need to be paid, subject to the exemption limits that are set ($12000 per year and a lifetime exemption limit of $1 million).
You will need to file federal gift tax return with IRS Form 709. But as the amount is less than the lifetime exemption limit, you will not have to pay any taxes.
Hi,
If you quit claim your property to someone, you may have to pay taxes for the transfer. For more details on this topic, go through the community discussions on the tax implication of quit claiming property.
Thanks
James
If you quit claim your property to someone, you may have to pay taxes for the transfer. For more details on this topic, go through the community discussions on the tax implication of quit claiming property.
Thanks
James
"Question is, do I have to pay capital gains taxes on this next year or ever, or any other state taxes or fees?"
There will be normal recordation fees for the quit claim deed as well as transfer fees and fund fees which you will have to pay at the time it is recorded at the county recorder's office.
There will be normal recordation fees for the quit claim deed as well as transfer fees and fund fees which you will have to pay at the time it is recorded at the county recorder's office.
Hi Lucar,
An individual needs to pay capital gains taxes only when he sells a property. But here you are just transferring the property to your nephew and that too through a quit claim deed. So, what you actually need to pay is the gift tax as any asset transferred in this manner is considered as gift. A gift allows you to get an exemption from the total amount of taxes paid provided you qualify for the exemption.
Under the laws established by the Federal government, for the year 2006, you can avoid paying taxes on the first $12,000 of the total value of the gift provided to a single person. Also, if your gift is worth less than $12,000, then you need not bother about the taxes.
In general, a gift becomes taxable when its total value along with that of the estate exceeds $2 million for the year 2006 through 2008.
Hope this information will help to clarify your doubts.
If you have any other query, feel free to post it in our forums.
Thanks,
Caron.
An individual needs to pay capital gains taxes only when he sells a property. But here you are just transferring the property to your nephew and that too through a quit claim deed. So, what you actually need to pay is the gift tax as any asset transferred in this manner is considered as gift. A gift allows you to get an exemption from the total amount of taxes paid provided you qualify for the exemption.
Under the laws established by the Federal government, for the year 2006, you can avoid paying taxes on the first $12,000 of the total value of the gift provided to a single person. Also, if your gift is worth less than $12,000, then you need not bother about the taxes.
In general, a gift becomes taxable when its total value along with that of the estate exceeds $2 million for the year 2006 through 2008.
Hope this information will help to clarify your doubts.
If you have any other query, feel free to post it in our forums.
Thanks,
Caron.
My grandmother left me stock a 20 years ago which is now worth $100,000, I want to buy a real Estate in California. How do I avoid paying capitol gains on that stock? Do I put the money for first into a real estate IRA for investing? Any help would be appreciated.