Other than having a quit claim deed (lot parcel, no home) is there anything else I have to do?

Question

My dad quit claimed his lot parcel to me. I dont want to sell it, but do I have to pay him anything for it? The lot is in the state of MT. And since I'm not making an income on it, do I have to file taxes in the state of MT. For now, he is paying the taxes.

Answer 1

You may be morally obligated to your father for the taxes (amount is between you), but legally I think you are free to sell. Make sure you have the right paperwork filed, and of course no "obligations" on the land.

Answer 2

I'm assuming that you have recorded the deed. Until you record the deed, the property is not yours yet.

Since he quitclaimed it to you, you are now legally responsible for the property taxes. Until you sell it, it has no affect on your income taxes.

Your father may have Gift Tax consequences to deal with if its value is greater than the annual or lifetime exemption amount. The Gift Tax rules are a bit convoluted so he should consult with a qualified tax advisor to see where he stands. If he's paying the property taxes, there could be Gift Tax consequences there as well if it's a huge parcel of land and the taxes are high.

If your father wanted anything for the property, he should have collected that from you prior to quitclaiming it to you. Once you have the deed in hand, you have no legal obligation to him for any payment.

Answer 3

Property taxes are charged to the property owner of record if you received a deed and you have recorded that deed chances are that the assessor has picked it up and is now assessing it in your name. Some states require the owner when first acquiring a property to take the recorded deed to the assessor's office and get the property assessed into their name.
To check directly from the horse's mouth here is the link to your state's taxation laws from our research department: PROPERTY TAXATION LAWS: http://mt.gov/revenue/forindividuals/property/aboutpt.asp
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