Posted on: 13th Mar, 2007 06:30 pm
i had purchased a condo property on behalf of my son, because he did not have sufficient credit rating at the time. he now has a very good paying career job with better credit worthiness. i would like to see if by doing a quit claim deed to transfer ownership to him, he would then be allowed to take the tax benefits for the mortgage interest, etc.
the mortgage is currently in my name. would that matter to the irs, as long as he is paying the bills and the ownership is transferred to him via the quit claim deed?
the mortgage is currently in my name. would that matter to the irs, as long as he is paying the bills and the ownership is transferred to him via the quit claim deed?
Some lenders might require the mortgage to be paid off when the title ownership changes as per due on sale clause.
First of all you need to contact the lender and ask whether he will allow the property to be transferred in your son's name.
First of all you need to contact the lender and ask whether he will allow the property to be transferred in your son's name.
Hi Bob,
As far as I know, one cannot deduct mortgage payments that he makes on behalf of someone else until and unless he is liable for the debt. So, your son can get the tax benefits for mortgage interest when his name is on the loan. Moreover, his name should also be on the title if he wants to get the tax benefits.
You can transfer the title or ownership rights to your son through quit claim deed. And, for the loan transfer, you need to talk to the lender and find out which way he would like you to take your name off the loan.
Thanks,
Sara
As far as I know, one cannot deduct mortgage payments that he makes on behalf of someone else until and unless he is liable for the debt. So, your son can get the tax benefits for mortgage interest when his name is on the loan. Moreover, his name should also be on the title if he wants to get the tax benefits.
You can transfer the title or ownership rights to your son through quit claim deed. And, for the loan transfer, you need to talk to the lender and find out which way he would like you to take your name off the loan.
Thanks,
Sara
If i quit claim my house to my son, do i incur any tax?
Hi walt!
Welcome to forums!
If you transfer the property to your son as a gift, then you will be liable for paying gift taxes. However, there is an annual gift tax exemption of $13,000.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you transfer the property to your son as a gift, then you will be liable for paying gift taxes. However, there is an annual gift tax exemption of $13,000.
Feel free to ask if you've further queries.
Sussane
Hi john!
Welcome to forums!
You need to contact your local CPA in this matter and take his/her opinion in this matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You need to contact your local CPA in this matter and take his/her opinion in this matter.
Feel free to ask if you've further queries.
Sussane