Posted on: 04th Jun, 2012 06:05 am
our father wants to quit claim deed his paid off property to his three children. my question is how will this affect our income tax? will we be showing it as income? we are not going to sell it, he will still live in it. also is there a better way tax wise to do this if he wants us to inherent this property but wants to take it out of his name now?
thank you, any help is appreciated.
thank you, any help is appreciated.
Hi mthmps!
Welcome to forums!
If you're not going to sell off the property, then I don't think the property will be considered as your income. You will have to contact a real estate attorney and take his opinion in order to know whether or not there is any other better way to transfer the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you're not going to sell off the property, then I don't think the property will be considered as your income. You will have to contact a real estate attorney and take his opinion in order to know whether or not there is any other better way to transfer the property.
Feel free to ask if you've further queries.
Sussane
Hello mthmps2,
It is important to understand that once the deed is signed, it will be hard to reverse or undo the deed. Only if the grantee agrees to quit claim the property back can the previous owner possess the property again. Otherwise, the grantor will have to show proof that the transfer was invalid.
:idea:
It is important to understand that once the deed is signed, it will be hard to reverse or undo the deed. Only if the grantee agrees to quit claim the property back can the previous owner possess the property again. Otherwise, the grantor will have to show proof that the transfer was invalid.
:idea:
>>Also is there a better way tax wise to do this if he wants us to inherent this property but wants to take it out of his name now?
Yes, with a "life estate". That'll keep the property in his name while he's alive, and automatically provide it to the children upon his passing.
Yes, with a "life estate". That'll keep the property in his name while he's alive, and automatically provide it to the children upon his passing.
