Posted on: 26th Aug, 2008 09:07 am
Ok, my wife and I are moving out of a house we have owned for 5 years. We have over $35,000 dollars in equity in the house. I told my brother I would be willing to carry the loan for he and his family and they would have to live in it for at least two years and then could sell it and take the equity. So, in short I am not trying to make any money here at all and will actually lose some, but I want to help my brother get on his feet. Would I have to pay capital gains tax even if no money is exchanging hands? Also, would this help build his credit? how would the home be placed in his name? Any other info you have would be appreciated.
Thanks
Thanks
Hello- Good questions. I'm not an attorney or a CPA, but this is what I know-
I don't think you'll have a capital gain on this, as you described it.
You still have to do this transfer with a local RE attorney. They will draft and record in your county office the new deed and also the new private mortgage (note).
His credit will only improve if you submit payment information to the credit bureaus- I think all 3 of them.
Thanks and Good Luck,
Ken L.
I don't think you'll have a capital gain on this, as you described it.
You still have to do this transfer with a local RE attorney. They will draft and record in your county office the new deed and also the new private mortgage (note).
His credit will only improve if you submit payment information to the credit bureaus- I think all 3 of them.
Thanks and Good Luck,
Ken L.
Hi Oakie!
I agree with Ken and don't think that you will have to pay a capital gain tax. But make it a point to transfer the property in his name and record it.
Thanks,
Jerry
I agree with Ken and don't think that you will have to pay a capital gain tax. But make it a point to transfer the property in his name and record it.
Thanks,
Jerry
