Posted on: 25th Dec, 2007 10:59 pm
Hi,
My dad owns a property and he would like to give that to my brother. if my dad quit claim his interest to my brother, what are the costs to both of them? (closing cost, property tax, gift tax capital gain ,etc)
thank you
wendy
My dad owns a property and he would like to give that to my brother. if my dad quit claim his interest to my brother, what are the costs to both of them? (closing cost, property tax, gift tax capital gain ,etc)
thank you
wendy
Hello Wendy,
Welcome to the forums.
If your dad quit claims his property to your brother then he might have to pay gift tax for that. If the value of the property exceeds the annual gift tax exemption limit of $ 12,000 per person, then your father will have to file Federal gift tax returns. But he doesn't have to pay the tax if he has not exceeded the lifetime gift exemption limit of $ 1 million.
You will find further information on gift tax exemption here http://www.mortgagefit.com/gift.html#exemption
Your brother may have to pay capital gains tax only if he sells off the property and not before that.
Hope this helps you. Feel free to ask if there is any further query.
Welcome to the forums.
If your dad quit claims his property to your brother then he might have to pay gift tax for that. If the value of the property exceeds the annual gift tax exemption limit of $ 12,000 per person, then your father will have to file Federal gift tax returns. But he doesn't have to pay the tax if he has not exceeded the lifetime gift exemption limit of $ 1 million.
You will find further information on gift tax exemption here http://www.mortgagefit.com/gift.html#exemption
Your brother may have to pay capital gains tax only if he sells off the property and not before that.
Hope this helps you. Feel free to ask if there is any further query.
Hi,
There is no closing cost associated with quit claim. You may have to pay a recording fee for doing this.
There is no closing cost associated with quit claim. You may have to pay a recording fee for doing this.
I don't know if there are any tax implications other than the gain in equity but that probably won't be taxed until the home sells and there is a profit. I would contact an accountant to be sure.