Posted on: 12th Oct, 2010 05:35 pm
I live in the state of Texas and my parents live in the state of Oklahoma. They are purchasing a house for me (outright no mortgage) and in 3 to 5 years they will transfer the deed to my name so I can take out cash on the home and pay them off. My question is when they transfer the deed to my name what taxes will we be responsible for? Transfer tax on my part, or a gift tax on their part, etc. How much will these taxes be?
Thanks for any help or suggestions.
Thanks for any help or suggestions.
Welcome RyanESparks,
If your parents transfer the property to you as a gift, then you'll be responsible for gift taxes. However, if the gift amount falls within the exemption limits, then they won't be liable for paying the taxes.
If your parents transfer the property to you as a gift, then you'll be responsible for gift taxes. However, if the gift amount falls within the exemption limits, then they won't be liable for paying the taxes.