Posted on: 03rd Feb, 2008 06:50 am
I got divorced this year, my ex husband offered for me to buy his half of the property, but I elected a quitclaim deed instead.
Since he seemed to be OK with it right away, now I question if I had made the right decision.
If the claimis considered a gift, do I have to come up with a massive amount of money to pay him as I sign? About how much will I be taxed?
The house is appraised at 234,000 and I had paid the half mortgage in it after we separated as if it was rent. Help?
Since he seemed to be OK with it right away, now I question if I had made the right decision.
If the claimis considered a gift, do I have to come up with a massive amount of money to pay him as I sign? About how much will I be taxed?
The house is appraised at 234,000 and I had paid the half mortgage in it after we separated as if it was rent. Help?
Hi Lostinplace,
Welcome to the forums.
Was there any reason behind doing a quitclaim and not buying?
Considering the payment of taxes, your ex-husband needs to worry about it because he has transferred his share to you. It's his responsibility to pay the gift tax provided he doesn't qualify for the exemptions.
You are the grantee who's receiving your husband's share of interest in the property. In short, he wants you to take over the property. But the only thing I'm concerned about is, has he paid off his share of the mortgage?
Take Care
Welcome to the forums.
Was there any reason behind doing a quitclaim and not buying?
Considering the payment of taxes, your ex-husband needs to worry about it because he has transferred his share to you. It's his responsibility to pay the gift tax provided he doesn't qualify for the exemptions.
You are the grantee who's receiving your husband's share of interest in the property. In short, he wants you to take over the property. But the only thing I'm concerned about is, has he paid off his share of the mortgage?
Take Care
Hi Lostinplace,
Generally the grantor pays the gift tax if he quitclaims more than the exemption limit. So, you will have not to pay gift tax as you are here the grantee.
But here your husband has been paid for his share of property. So he has not to pay gift tax but he may need to pay Capital gain tax..
Best of luck.
Larry
Generally the grantor pays the gift tax if he quitclaims more than the exemption limit. So, you will have not to pay gift tax as you are here the grantee.
But here your husband has been paid for his share of property. So he has not to pay gift tax but he may need to pay Capital gain tax..
Best of luck.
Larry