Posted on: 07th May, 2009 07:27 am
for the past 4 years my husband and i have been paying the morgage on a house when it is my mom and dad's name. i am about to pay off the house and want to do a quit claim deed to gain control over the house. everyone is agreeing it is the best thing to do since we have paid for the house and all improvements.
now, can they sign off on the house and gift my husband each the max gift amount since the house is only around the 25k mark? after we gain control over the house we are going to use it as a rental since we just got a new house. just wondered am i on the right track? also, since the house is payed off will anyone get hit with gains or extra taxes at the end of this next year. right now our business we own is doing great so we really wouldn't want a huge profit gain if we add this house.. just need direction ;) thanks in advance!
now, can they sign off on the house and gift my husband each the max gift amount since the house is only around the 25k mark? after we gain control over the house we are going to use it as a rental since we just got a new house. just wondered am i on the right track? also, since the house is payed off will anyone get hit with gains or extra taxes at the end of this next year. right now our business we own is doing great so we really wouldn't want a huge profit gain if we add this house.. just need direction ;) thanks in advance!
i don't think you need much direction, peke. you're moving the right way already. i don't know that you necessarily state an amount of gift specifically. many family transfers are done for consideration of $1, for example.
check with a real estate attorney in your area to get a bit more detail, but in my opinion, you're not in for any devastating surprises no matter what.
check with a real estate attorney in your area to get a bit more detail, but in my opinion, you're not in for any devastating surprises no matter what.
After the house is paid for and there are not more mortgages, they can transfer the house to you without any issues. Use a warranty deed.
Taxes are a little trickier. If the parents gift you the house, they are responsible for any gift taxes, but more likely capital gains tax. I would check with an accountant on that issue.
Taxes are a little trickier. If the parents gift you the house, they are responsible for any gift taxes, but more likely capital gains tax. I would check with an accountant on that issue.
