Posted on: 04th Oct, 2010 07:22 pm
Hi, my mom and I have a towehouse together, recently she quitclaim her name off the deed to my name only. Does she have to pay any tax ( gift tax) ? or do I have to pay tax? for owning the townhouse myself. thanks
Hi MC!
Welcome to forums!
If she has transferred the property to you as a gift, then she will be liable for paying gift taxes. However, there is an annual gift tax exemption of $13000. If the gifted amount does not cross the exempted amount, then your mother won't have to pay any taxes. As you'll be the sole owner of the property, then you will be liable for the maintenance of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If she has transferred the property to you as a gift, then she will be liable for paying gift taxes. However, there is an annual gift tax exemption of $13000. If the gifted amount does not cross the exempted amount, then your mother won't have to pay any taxes. As you'll be the sole owner of the property, then you will be liable for the maintenance of the property.
Feel free to ask if you've further queries.
Sussane
Thanks for the reply. When we did the transfer, she put down the consideration good for the sum of $10. Is this transfer still consider a "gift"?
Hi MC,
If a value is mentioned in the property deed, then it won't be considered as a gift.
Thanks
If a value is mentioned in the property deed, then it won't be considered as a gift.
Thanks