Posted on: 16th Jul, 2010 09:35 am
Hello,
I purchased a house with my mother 5 years ago - she paid closing costs at the time (they were minimal) and paid for insurance and taxes on the house for the first few years - I've since taken on both. I pay the mortgage, though we are both on it. And it can easily be shown that I've paid her back the rest.
Now we are looking to get her off the title. If we were to sell the house right now, it is very likely that we would not even get the remaining cost of the mortgage out of the house - though it may be a near thing. Does her "gift" actually have any value I need to worry about with taxes, if it is likely mortgaged for more than it is worth? Does the fact that I've paid for most of the costs mean anything to taxes?
Thanks,
LFR
I purchased a house with my mother 5 years ago - she paid closing costs at the time (they were minimal) and paid for insurance and taxes on the house for the first few years - I've since taken on both. I pay the mortgage, though we are both on it. And it can easily be shown that I've paid her back the rest.
Now we are looking to get her off the title. If we were to sell the house right now, it is very likely that we would not even get the remaining cost of the mortgage out of the house - though it may be a near thing. Does her "gift" actually have any value I need to worry about with taxes, if it is likely mortgaged for more than it is worth? Does the fact that I've paid for most of the costs mean anything to taxes?
Thanks,
LFR
hi lfr,
you can remove your mother from the property using the quit claim deed. she needs to sign a quit claim deed and transfer the property to you. if your mother transfers the property to you as a gift, then she may become liable for the gift taxes. however, there is a lifetime gift tax exemption of $1 million. thus, she won't have to pay the gift taxes though she transfers the property to you as a gift.
thanks
you can remove your mother from the property using the quit claim deed. she needs to sign a quit claim deed and transfer the property to you. if your mother transfers the property to you as a gift, then she may become liable for the gift taxes. however, there is a lifetime gift tax exemption of $1 million. thus, she won't have to pay the gift taxes though she transfers the property to you as a gift.
thanks