Posted on: 14th Dec, 2009 04:38 pm
Where do I find information for tax implications of a quit claim in a particular state? 3 of us own the house and one will do a quit claim transferring the house to the other 2.
What expenses can we expect in regards to taxes (or else)? Here I am also thinking about the home buyer's tax credit. As far as I understand the grantor needs to pay it back. But what happens to the grantees?
What expenses can we expect in regards to taxes (or else)? Here I am also thinking about the home buyer's tax credit. As far as I understand the grantor needs to pay it back. But what happens to the grantees?
are you indicating that this is a property that was only recently purchased, and that the transferor claimed a credit that now must be repaid?
as grantees of the property, won't those people continue to live in the property and maintain it as a primary residence? or is this an investment, in which case the credit isn't valid to begin with?
as grantees of the property, won't those people continue to live in the property and maintain it as a primary residence? or is this an investment, in which case the credit isn't valid to begin with?
Welcome pompomka,
You can contact a tax advisor and he may help you knowing the tax implications of the quit claim deed. If one of the owners of the property transfers the property to the other owners, then that person would have to pay the gift taxes. However, there are certain exemptions in cases of gift taxes. You can check it out from the given page: http://www.mortgagefit.com/gift.html#111114 .
As far as first time homebuyer's tax credit is concerned, I think the grantees will receive it.
You can contact a tax advisor and he may help you knowing the tax implications of the quit claim deed. If one of the owners of the property transfers the property to the other owners, then that person would have to pay the gift taxes. However, there are certain exemptions in cases of gift taxes. You can check it out from the given page: http://www.mortgagefit.com/gift.html#111114 .
As far as first time homebuyer's tax credit is concerned, I think the grantees will receive it.
yes the property was only recently purchased (a little more than a year ago), and yes the transferor claimed a credit that now must be repaid...or would that be shared now between the 2 of us as the reply above indicated?
we would be the grantees of the property and we would continue to live on the property as primary residence. are there tax implications for us or for the transferor.
so the transferor would claim it as a gift and we have to pay taxes on it? obviously we bought the house for much more than $13,000... how do i find out how much would it be approximately?
if we do a quit claim we would do a refinance later. (unfortunately, at the moment we cannot do a refi because we do not have enough income from permanent employment). if we are able to do a refi (only) would it be the same as far as taxes (gift tax or anything else) or would that be different?
we would be the grantees of the property and we would continue to live on the property as primary residence. are there tax implications for us or for the transferor.
so the transferor would claim it as a gift and we have to pay taxes on it? obviously we bought the house for much more than $13,000... how do i find out how much would it be approximately?
if we do a quit claim we would do a refinance later. (unfortunately, at the moment we cannot do a refi because we do not have enough income from permanent employment). if we are able to do a refi (only) would it be the same as far as taxes (gift tax or anything else) or would that be different?
Hi pompomka!
Welcome to forums!
As far as I can understand the situation, if the concerned property would remain as your primary residence, then the two of you can claim the first time homebuyer's tax credit. If the property is transferred to you as a gift, then the grantor of the property would be responsible for the gift taxes. In my opinion, the value of the portion of property transferred to you would be taken into consideration for gift taxes. Transfer of the property would be considered for gift taxes. A refinance will only help you in transferring the loan from one person to another.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I can understand the situation, if the concerned property would remain as your primary residence, then the two of you can claim the first time homebuyer's tax credit. If the property is transferred to you as a gift, then the grantor of the property would be responsible for the gift taxes. In my opinion, the value of the portion of property transferred to you would be taken into consideration for gift taxes. Transfer of the property would be considered for gift taxes. A refinance will only help you in transferring the loan from one person to another.
Feel free to ask if you've further queries.
Sussane
Thanks a lot for the answers! :)