Posted on: 16th Oct, 2010 12:19 pm
In virginia my brother and I own a house as joint tenancy with right of survivorship.
He wants to move and currently we owe more on the house than it is worth. The house has depriciated about 25000 dollars.
What are the Tax implications if he quitclaims this house to me? After the quit claim is recorded my lendor has agreed to allow me to assume the loan.
What is the value of the home for sale purposes? The original purchase amount or the value at the time on the quit claim?
Does he own any taxes for transfering ownership of the house to me?Appraisal at Purchase: 250,000
Original Purchase Price: 239000
Original Mortgage Amount: 242000
Current Mortgage Amount: 230000
Current Appraisal: 225000
He wants to move and currently we owe more on the house than it is worth. The house has depriciated about 25000 dollars.
What are the Tax implications if he quitclaims this house to me? After the quit claim is recorded my lendor has agreed to allow me to assume the loan.
What is the value of the home for sale purposes? The original purchase amount or the value at the time on the quit claim?
Does he own any taxes for transfering ownership of the house to me?Appraisal at Purchase: 250,000
Original Purchase Price: 239000
Original Mortgage Amount: 242000
Current Mortgage Amount: 230000
Current Appraisal: 225000
Welcome adamlevenson,
If the property is transferred to you as a gift, then your brother will be liable for paying gift taxes. Moreover, you would become fully responsible for the property. Once you assume the loan, you will be responsible for the mortgage payments as well. The value of the home at the time of signing the quitclaim deed will be considered as the price of the property.
If the property is transferred to you as a gift, then your brother will be liable for paying gift taxes. Moreover, you would become fully responsible for the property. Once you assume the loan, you will be responsible for the mortgage payments as well. The value of the home at the time of signing the quitclaim deed will be considered as the price of the property.
That isn't quite what I was asking. Is it considered a gift with him giving me his interest and me assuming the loan? To me that is a sale, but I am unsure how to structure it that way. The house has negative equity.
Hi AdamL!
Welcome to forums!
If you're not paying the seller any money for the property transfer, then it will be considered as a gift from the seller to you. Thus, the seller will be liable for paying the gift taxes.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you're not paying the seller any money for the property transfer, then it will be considered as a gift from the seller to you. Thus, the seller will be liable for paying the gift taxes.
Feel free to ask if you've further queries.
Sussane