Posted on: 12th Jul, 2011 01:36 pm
my sister, her husband and i own a house together. they filed for bankruptcy and were discharged from the mortgage on the house. i need to short sell the house to avoid foreclosure since they are no longer contributing towards the mortgage payments. they are now resisting the sale. i am thinking about having them relinquish their ownership holdings through a quitclaim, as a last resort, in order to move forward with a short sale. are there taxes involved with this transfer?
Welcome Guest,
You should ask your sister and her husband to sign a quitclaim deed and transfer the property to you. Once they do that, you will be able to sell off the property. If they transfer the property to you as a gift, then they will be liable for paying the gift taxes.
You should ask your sister and her husband to sign a quitclaim deed and transfer the property to you. Once they do that, you will be able to sell off the property. If they transfer the property to you as a gift, then they will be liable for paying the gift taxes.
guest, you noted that they're resistant to a sale. in that light, what makes you believe that they'd be amenable to a quit claim deed relinquishing their ownership rights? have the three of you had this discussion at all?
i'm not quite sure how gift taxes came into this, but i would have to defer on the question of any sort of taxes to your local taxing authority, or your state taxing authority, whichever is appropriate.
i'm not quite sure how gift taxes came into this, but i would have to defer on the question of any sort of taxes to your local taxing authority, or your state taxing authority, whichever is appropriate.
