Posted on: 21st May, 2010 03:47 pm
I've been involved in litigation with my sister for two years about a property we owned jointly. We recently settled that I would pay her $60,000 for her share. Her laywer has drafted a quitclaim deed for $0.00 consideration and I'm not clear why it's not for the $60,000. What is advantage for not using the true consideration.
Hi bigred,
As far as I can understand, the lawyer has done so in order to avoid any tax obligations on your sister's behalf. If the amount is mentioned in the deed, it will be considered as her income and she may have to pay taxes on it.
Thanks
As far as I can understand, the lawyer has done so in order to avoid any tax obligations on your sister's behalf. If the amount is mentioned in the deed, it will be considered as her income and she may have to pay taxes on it.
Thanks
Hi,
James is absolutely correct. If the amount is mentioned on the deed then she has to pay the tax as it is considered as her income. However, as she is signing the quitclaim you will become the sole owner of the property even if the value you paid to you sister is not mentioned in the deed.
James is absolutely correct. If the amount is mentioned on the deed then she has to pay the tax as it is considered as her income. However, as she is signing the quitclaim you will become the sole owner of the property even if the value you paid to you sister is not mentioned in the deed.