Posted on: 18th Sep, 2008 07:56 am
I needed to attach the equity loan from my home to a property I own in joint tenancy, an investment condo. I have been and will continue paying on that loan until the condo is sold. I was wondering if I should sign a quick claim deed to the other owner so that he can reinvest the money and avoid the capital gains tax for both of us? He signed the bank note and the loan will be paid when the property is sold. Until then, as I stated, I will continue payment on the loan.
Hi colleen vallad-Hix
Yes, you can sign a quitclaim deed to the other owner so that both of you can avoid paying capital gains tax. However what I would like to mention here is you cannot attach any loan on the home to a property. You can take another loan on the condo and payoff the equity loan first. However it will be a bit difficult if you have already listed your condo for sale as the lenders will not offer you any kind of loan. In case you are planning to list the condo for sale, you should not go for loan as the lender may ask you to clear off the loan immediately.
Yes, you can sign a quitclaim deed to the other owner so that both of you can avoid paying capital gains tax. However what I would like to mention here is you cannot attach any loan on the home to a property. You can take another loan on the condo and payoff the equity loan first. However it will be a bit difficult if you have already listed your condo for sale as the lenders will not offer you any kind of loan. In case you are planning to list the condo for sale, you should not go for loan as the lender may ask you to clear off the loan immediately.
Hi colleen vallad-Hix !
Yes, its better you do not go for a loan if you are planning to sell the property. The lender can ask you to pay off the loan immediately.
Thanks,
Jerry
Yes, its better you do not go for a loan if you are planning to sell the property. The lender can ask you to pay off the loan immediately.
Thanks,
Jerry