Posted on: 25th Jul, 2009 08:37 am
Considering an interfamily transfer of half interest in a home with no existing mortgage.
Question is: What would the status be of the $250K exemption to the transferor if the family member being added on title were to 'buy them out' and pay them from the proceeds of a 're-fi' on the property?
Question is: What would the status be of the $250K exemption to the transferor if the family member being added on title were to 'buy them out' and pay them from the proceeds of a 're-fi' on the property?
The person transferring the property may have to pay a gift tax for the portion transferred to the family member. Your best option would be to contact a tax adviser and take his opinion in this regard.