Posted on: 07th Jan, 2009 05:22 pm
Hello there -
I have an unusual question. My mother and I jointly own a property which she lives in. She also owns a vacation home worth approximately the same amount as my half of her residence. We would like to trade out and minimize any tax implications. What is the best way to do this? I've looked into the 1031 exchanges, but it doesn't seem to apply to vacation homes. Would quit claim deeds do the the trick for us? She plans to live in her home until she dies if possible and I would just use the vacation home as an investment. Thanks!
I have an unusual question. My mother and I jointly own a property which she lives in. She also owns a vacation home worth approximately the same amount as my half of her residence. We would like to trade out and minimize any tax implications. What is the best way to do this? I've looked into the 1031 exchanges, but it doesn't seem to apply to vacation homes. Would quit claim deeds do the the trick for us? She plans to live in her home until she dies if possible and I would just use the vacation home as an investment. Thanks!
Hi alconnell,
Is the vacation home free and clear? If there is a mortgage on the property, then it will not be easier for your mother to sign a quitclaim deed to you. Once the ownership of the property changes, then you will have to transfer the mortgage in your name by refinancing. If the property is owned free and clear, then she can sign a quitclaim deed and transfer the property to you.
Thanks
Is the vacation home free and clear? If there is a mortgage on the property, then it will not be easier for your mother to sign a quitclaim deed to you. Once the ownership of the property changes, then you will have to transfer the mortgage in your name by refinancing. If the property is owned free and clear, then she can sign a quitclaim deed and transfer the property to you.
Thanks