Posted on: 27th Mar, 2008 10:31 pm
I was wondering if there is any thing that i could do here, My dad Did a Qiuck deed and put property in my name and then this property was sold, with the money, my dad paid off the loan that was on the property. Now the IRS is showing that i Made a Gross profit because the Land was in my name and the Loan was still in my dads name. is there any way to reverse the Quick deed
Welcome jeremiah,
I don't think there's much to do here. This is because the home has already been sold off. What you can do is, take legal action and prove that your dad signed on the papers in your name perhaps. I hope there is property on the land. So, are you the owner of the property apart from the land?
I don't think there's much to do here. This is because the home has already been sold off. What you can do is, take legal action and prove that your dad signed on the papers in your name perhaps. I hope there is property on the land. So, are you the owner of the property apart from the land?
So sorry to her of your father's illness..i hope he's undergoing some treatment.
regarding the tax on the gains, well, since your father had placed you on the title, and then sold off, that's the reason, the IRS is coming after you. Perhaps if you had stopped him from selling the property in your name, you could have avoided the taxes. But now, there's no other way but to pay it. By the way, are you getting any exemption on the taxes? Just read through the information on Capital gains tax exemption at http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption .
regarding the tax on the gains, well, since your father had placed you on the title, and then sold off, that's the reason, the IRS is coming after you. Perhaps if you had stopped him from selling the property in your name, you could have avoided the taxes. But now, there's no other way but to pay it. By the way, are you getting any exemption on the taxes? Just read through the information on Capital gains tax exemption at http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption .
The property was sold for $75,000 and my dad paid the remaining balance of $60,000 that was due on the mortgage, and since it was quit deeded into my name, i show a Gross of $75,000 to IRS and the taxes that are due on the amount is around $16,000, so what you are saying is i am stuck paying the taxes for this Quick deed Process. there is no way out?
i appreciate all the help that you are giving me.
i appreciate all the help that you are giving me.
Hi jeremiah,
The sale price of the house is $75000.
The cost basis (original price) = X (say)
The adjusted basis = (cost basis + any improvement/depreciation) = Y (say)
The profit/capital gains = $75000 - Y = Z (say)
The tax will have to be paid on $Z provided you don't qualify for exemptions as given in the page referred by Adonis.
N.B Usually when a person transfers property to someone, the cost basis at the time of sale is the original price at which the owner bought it. But if the receiver inherits property, then cost basis equals the stepped up fair market value of the property at the time the owner died.
Thanks
The sale price of the house is $75000.
The cost basis (original price) = X (say)
The adjusted basis = (cost basis + any improvement/depreciation) = Y (say)
The profit/capital gains = $75000 - Y = Z (say)
The tax will have to be paid on $Z provided you don't qualify for exemptions as given in the page referred by Adonis.
N.B Usually when a person transfers property to someone, the cost basis at the time of sale is the original price at which the owner bought it. But if the receiver inherits property, then cost basis equals the stepped up fair market value of the property at the time the owner died.
Thanks
Hello,
In the middle of 2009 my father quitclaimed me the condo (Property A) I am currently living in. I recently purchased another property (Property B) which I want to get the New Buyer Tax Credit on since this is the first home I am actually purchasing. I know that I am not allowed to claim the credit if I have owned a property in the last 3 years. Since my father quitclaimed me property A, does that mean I do not qualify for the credit on property B? If so, is there any way to reverse the quitclaim as if he never quitclaimed it to me in the first place and effectively qualifying me for the New Buyer Tax credit?
In the middle of 2009 my father quitclaimed me the condo (Property A) I am currently living in. I recently purchased another property (Property B) which I want to get the New Buyer Tax Credit on since this is the first home I am actually purchasing. I know that I am not allowed to claim the credit if I have owned a property in the last 3 years. Since my father quitclaimed me property A, does that mean I do not qualify for the credit on property B? If so, is there any way to reverse the quitclaim as if he never quitclaimed it to me in the first place and effectively qualifying me for the New Buyer Tax credit?
Welcome lanceman,
Your query has been answered in the given page:
http://www.mortgagefit.com/quitclaim/buyer-taxcredit.html
Take a look at it. I hope it will help you.
Your query has been answered in the given page:
http://www.mortgagefit.com/quitclaim/buyer-taxcredit.html
Take a look at it. I hope it will help you.
I bought a home the loan is in my name only. However i had my parents on the deed just incase anything ever happened to me. Two years later i decided to put the home on the market and since my parents live in vegas and i am in florida i thought it would be easier just to have them quit claimed off the deed. That was in 2007 know in 2010 i received a notice from the irs stating that i may owe tax regarding the quit claim.
I am completely at a lost because they have also tacted on interest. The loan is solely in my name i paid the tax on the complete loan amount not a portion. How can they say i owe more taxes. My parents were on the deed in name only there was no montary gain from them on my part.
I am completely at a lost because they have also tacted on interest. The loan is solely in my name i paid the tax on the complete loan amount not a portion. How can they say i owe more taxes. My parents were on the deed in name only there was no montary gain from them on my part.
Hi THERESA,
Your parents had quit claimed the property to you while they removed their name from the deed. As a result, you are liable for the property transfer taxes and other dues. If you haven't paid them off, then you will have to do it now.
Your parents had quit claimed the property to you while they removed their name from the deed. As a result, you are liable for the property transfer taxes and other dues. If you haven't paid them off, then you will have to do it now.