Posted on: 15th Nov, 2010 12:59 pm
my father would like to quitclaim his house to me and still has a mortgage. after the paperwork has gone through the county, with me as the owner, i plan on refinancing the house for the amount he owes to pay off the mortgage. am i technically paying for the house and need to put a price on the quitclaim deed form or do i put $0.00 in the space that asks if i paid money for it since it's after the fact?
hi sammybaby!
welcome to forums!
it is not mandatory for you to put a sale price on the deed. you are not paying for the house, you will be actually paying off the mortgage when you refinance it in your name. however, if your father transfers the property to you as a gift, then he will be liable for paying the gift tax.
feel free to ask if you've further queries.
sussane
welcome to forums!
it is not mandatory for you to put a sale price on the deed. you are not paying for the house, you will be actually paying off the mortgage when you refinance it in your name. however, if your father transfers the property to you as a gift, then he will be liable for paying the gift tax.
feel free to ask if you've further queries.
sussane
Thanks Sussane. How do they figure out how much gift tax will be applied?
Jennifer
Jennifer
How will my taxes be affected by receiving a home through a quitclaim deed?
Hi Sammybaby,
The gift tax will depend upon the value of the property. You can contact a tax adviser and he will help you in this matter. You will be liable for paying the property taxes in regards to that property.
The gift tax will depend upon the value of the property. You can contact a tax adviser and he will help you in this matter. You will be liable for paying the property taxes in regards to that property.