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Quit Claim Deed and tax implication on negative equity

Posted on: 21st Sep, 2009 09:00 am
hi,

the mortgage is in my partner's name only. but we are both on the title. the house has a negative equity. now my partner wants to sell the house. my question is what are my options? will the quit claim deed has any tax consequences for me? excise tax?

thank you
since you are not gaining anything, capial tax will not be applied.

however you need to pay back balance mortgage to lender
Posted on: 21st Sep, 2009 10:16 am
Hi pammeluff,

As the deed is in both the names, you will also have to sign the quitclaim deed. You and your partner would be responsible for the transfer fees, stamp doc fees and other related fees.
Posted on: 21st Sep, 2009 09:53 pm
If you sell the house with a loss and you do not owe anythign to the bank, then you cna take tax deduction on the losses
Posted on: 21st Sep, 2009 10:08 pm
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