Posted on: 03rd Oct, 2011 10:01 am
My sister and I co-own a cottage that had been given to us years ago from our parents. Now she would like me to buy her out. Do we put the amount paid on a quitclaim form? What effect will this have on either of our taxes?
Hi Lori,
It will be your discretion whether or not you want to put the amount on the quitclaim deed. However, if you sell off the property for a profit, then you will be liable for paying the capital gains taxes. If you gift the property to your sister, then you will be liable for paying the gift taxes.
Thanks
It will be your discretion whether or not you want to put the amount on the quitclaim deed. However, if you sell off the property for a profit, then you will be liable for paying the capital gains taxes. If you gift the property to your sister, then you will be liable for paying the gift taxes.
Thanks