Posted on: 10th Oct, 2010 09:46 am
Hi
My friend and I purchased a condo in 2006 for $300K. Given the real estate market, the condo is now worth considerably less. Today, we have $220K left on the mortgage. He has suggested that if I want out, I could quit claim the deed over to him and we would not transfer any cash as part of the transaction.
If i quit claim, can I claim long term capital loss by purchasing at $300K and essentially "selling" the property to him at $220K?
Thanks,
Gil
My friend and I purchased a condo in 2006 for $300K. Given the real estate market, the condo is now worth considerably less. Today, we have $220K left on the mortgage. He has suggested that if I want out, I could quit claim the deed over to him and we would not transfer any cash as part of the transaction.
If i quit claim, can I claim long term capital loss by purchasing at $300K and essentially "selling" the property to him at $220K?
Thanks,
Gil
Hi Gil,
If you're selling the property to your friend at a loss, then you'll be able to claim the capital gains losses. However, it'll be better if you could contact your tax adviser and take his opinion in this matter. He will be able to guide you further in this regard.
Thanks,
Jerry
If you're selling the property to your friend at a loss, then you'll be able to claim the capital gains losses. However, it'll be better if you could contact your tax adviser and take his opinion in this matter. He will be able to guide you further in this regard.
Thanks,
Jerry