a friend was gifted his parents house to him so he could use it as collateral to buy the house
2006-09-12 08:32:59 · 5 answers · asked by nevierev 1 in Politics & Government ➔ Law & Ethics
With most property there is no tax consequence for a parent to give it to their child or vice-versa or from spouse to spouse. I'm pretty sure that is the same with real estate. As for avoiding the inheritance tax, unless your parents are extremely wealthy or the left gets their way of reversing the death tax elimination, you probably won't have any tax.
2006-09-12 08:52:41 · answer #1 · answered by Chris J 6 · 2⤊ 0⤋
Your friend can also avoid paying an inheritance tax when the parents pass away..and obviously use it as collateral as in a home loan.
2006-09-12 08:37:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I don't know about other states, but in Oklahoma the parent who owns the home fills out a quit claim deed giving the house to his child. In the amount paid, they put "love and affection" and the child files it at the County seat.
2006-09-12 08:36:34 · answer #3 · answered by oklatom 7 · 0⤊ 0⤋
Wow! Thank them profusely.
2006-09-12 08:40:20 · answer #4 · answered by Mommymonster 7 · 0⤊ 0⤋
you say.. "thank you"
2006-09-12 08:38:07 · answer #5 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋