Posted on: 28th Aug, 2009 06:17 pm
we are in the process of transferring property from our mother to the five siblings via a quit claim deed. we understand that we will be liable for the taxes. are we also obligated to file on each of our individual tax forms that we received a gift equivalent to 1/5 of the value of the property at the time of the quit claim deed changeover? since this property has two rentals on it, what would be the best way to handle this part of this transferal of property? should we incorporate, form an llc or just from a dba company? the rental will basically be paying for the taxes ,any maintenance to the property and paying off a lien on the property.
thanks
dennis
thanks
dennis
Welcome sonicden,
As your mother is transferring the property to you and your siblings in gift, she would be responsible for the gift taxes. So, I don't think you will have to list it while you file your tax forms. However, you can also contact a tax assessor and he may help you in taking the right decision. Transferring the property into an LLC could be a good option. However, if there's a mortgage on that property, then you should inform the lender about this transfer.
As your mother is transferring the property to you and your siblings in gift, she would be responsible for the gift taxes. So, I don't think you will have to list it while you file your tax forms. However, you can also contact a tax assessor and he may help you in taking the right decision. Transferring the property into an LLC could be a good option. However, if there's a mortgage on that property, then you should inform the lender about this transfer.
you will be liable for property tax payments.