quit claim to avoid taaxes

Hi Richard,

Welcome to Mortgagefit forum.

If you quit claim you will be able to avoid capital gains tax but if you receive a value less than property's current market value then it will be considered as a gift from you to her.

And as such you may have to pay gift taxes if the value of your gift exceeds the gift tax exemption limits.

Colin

Yes Richard, you can quit claim & the good thing is that no gift tax has to be paid if the value of your gift to sister does not exceed the annual gift tax exemption of $12,000.

Even if the value exceeds this annual exemption limit you will not have any gift tax liability if you do not cross the life time gift tax exemption limit of $1 million but would have to file gift tax return.

You can also go through this page to read more about tax implications of quit claiming property interest to your sister.

Do let me know if you have any other questions.

Thanks
Blue

"I am joint tenant on propery with my siste. Property going to be put up for sale. Can I avoid tax (capital gain on house) by quit claiming same to my sister who is in much lower tax bracket than me??"
is there any mortgage on the property?

hi, I am a bit confused. I 've heard one has to pay transfer tax on quitclaiming apart from gift tax and then there is the stamp duty. is there any difference between transfer tax and stamp duty or are they the same, only the names varying from one state to another.

They mean the same thing Wonder and just called differently in different states.

McKenna