Posted on: 07th Mar, 2008 06:54 pm
i live in the house i grew up i. it is ouwned by my mother. she lives in a condo. she wants to sell me the propety but is afraid of the capital gains tax. can she quit claim deed the property to me and i take out a home equity loan to pay her for the property? what are the tax ramifiactions on me?
Welcome Susan,
If your mother qualifies for the capital gains tax exemption, then she can avoid paying the taxes. Take a look at the exemption limit at http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption .
However, if your mother decides to quitclaim the property over to you, then you can take out a home equity loan if you qualify for one. But is there a mortgage currently on the home?
If your mother qualifies for the capital gains tax exemption, then she can avoid paying the taxes. Take a look at the exemption limit at http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption .
However, if your mother decides to quitclaim the property over to you, then you can take out a home equity loan if you qualify for one. But is there a mortgage currently on the home?
Hi Susan,
Welcome to the forum.
Is it the primary house of your mother? If not then she cannot qualify for the capital gains tax exemption.
If it is a mortgaged property then you will have take permission from the lender prior to signing the quitclaim deed. And I agree with Adonis that you can take a HELOC to pay your mother.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
Is it the primary house of your mother? If not then she cannot qualify for the capital gains tax exemption.
If it is a mortgaged property then you will have take permission from the lender prior to signing the quitclaim deed. And I agree with Adonis that you can take a HELOC to pay your mother.
Feel free to ask if you have any further questions.
Best of luck,
Larry