Posted on: 06th Nov, 2010 01:15 pm
I bought a house with my parents 8 years ago in California. A few years later, I got married. Now, I am refinancing and changing the loan so that its in my and my wife's name. While my parents will no longer be on the mortgage, they will continue to be on the title. While refinancing, we are also adding my wife's name to the title.
Do I need to pay property transfer tax?
Does the IRS consider this a gift, and if so, do we have to pay gift tax?
Do I need to pay property transfer tax?
Does the IRS consider this a gift, and if so, do we have to pay gift tax?
Hi shish,
You will have to pay the property transfer tax as your wife's name will be added to the property deed. If your parents transfer the property to you as a gift, then your parents will be liable for paying the gift taxes.
You will have to pay the property transfer tax as your wife's name will be added to the property deed. If your parents transfer the property to you as a gift, then your parents will be liable for paying the gift taxes.