Posted on: 19th Jan, 2009 11:22 am
Although it was all of my money that was used for closing, improvements, and down payments...My mom and I have had a 50/50 share on a property since 2004. We have both lived here for that same time as our primary residence. We have each been writing off 50 percent of the property taxes and mortgage interest every year too since the monthly expenses have been split 50/50. Now, I am re-financing to another 30yr fixed loan for less interest and that new loan will only be in my name. My Mom is also going to have her name removed from the deed so that my name is the only name on the Deed. My question is...how will this affect our income taxes? Will we owe any capital gains tax? If so- how can I go about this differently so that niether one of us will owe any capital gains tax? We paid 255,000 and owe about 234,000. The new loan will be for about 240,000 in my name only. In this market, the market value could be anywhere between 275,000 - 320,000, I'm really unsure. Please help. Thank you.
Hi Jamie,
As the property will be transferred in your name, you will have to pay the property taxes on that property. You can contact the tax assessor's office and change the property tax bills in your name. As far as capital gains tax is concerned, it will come into question when you sell off the property. But as far as I know, you will not have to pay the capital gains tax if it's your primary residence.
Thanks
As the property will be transferred in your name, you will have to pay the property taxes on that property. You can contact the tax assessor's office and change the property tax bills in your name. As far as capital gains tax is concerned, it will come into question when you sell off the property. But as far as I know, you will not have to pay the capital gains tax if it's your primary residence.
Thanks