Posted on: 28th Dec, 2007 06:59 pm
My soon to be ex presented me with a gift deed to sign rather thatn a quit
claim deed at the signing of our property settlement
agreement... How does that affect (if at all) my liability for taxes etc on the property that he will now buy me out of per the PSA?
claim deed at the signing of our property settlement
agreement... How does that affect (if at all) my liability for taxes etc on the property that he will now buy me out of per the PSA?
It shouldn't change anything.......unless you have a gain in equity of more than 500k.......I am not however a CPA so you should probably check with one.
Hello Cacci,
If your ex is buying you out, that is not considered a gift.
In that case if you are signing the deed to transfer the ownership rights to your ex, you may have to file a gift tax returns if the annual gift tax exemption limit is exceeded. The annual gift tax exemption limit is $12,000 per person.
You may not have to pay this tax if you don't cross the lifetime exemption limit of $ 1 million but you may have to file the gift tax returns.
You will find further information on gift tax exemption here at http://www.mortgagefit.com/gift.html#exemption
If your ex is buying you out, that is not considered a gift.
In that case if you are signing the deed to transfer the ownership rights to your ex, you may have to file a gift tax returns if the annual gift tax exemption limit is exceeded. The annual gift tax exemption limit is $12,000 per person.
You may not have to pay this tax if you don't cross the lifetime exemption limit of $ 1 million but you may have to file the gift tax returns.
You will find further information on gift tax exemption here at http://www.mortgagefit.com/gift.html#exemption
You are giving the property to him. make sure you are ok with not recieving any equity. If there is equity in the property that you feel you are entited to then I would negotiate that amount before signing. As soon as you sign, it's his.