2007-03-18 15:26:41 · 7 answers · asked by resquivel72@verizon.net 1 in Business & Finance ➔ Taxes ➔ United States
You might transfer it through a land trust and avoid taxes and capital gains.
2007-03-18 16:12:29 · answer #1 · answered by Myron 4 · 1⤊ 0⤋
I would suggest seeing an attorney and make certain the papers are wrote out correctly. Each state has its own rules. For an example I am aware of a state that requires the marital status of any male on the deed be stated. It would be bad if the transferred failed because of some missing or wrong information.
Also, there will be the gift tax. You can give up to $12,000 to each person in a year with out being subject to the tax. If you are married, you and your spouse can give him up to $24,000. If both he and you are married than up to $48,000 can be given. (2 gifts to each person)
A way around the gift tax with property is not to hard to do. You will (or your attorney) will write a mortgage document (or land contract) for your son. It will need to have an interest rate that is comparable with market interest rates on mortgages.
Your son will have to pay you the mortgage payments, but he get a tax deduction for the mortgage. You will need to report the mortgage interest as income. To reduce the interest that needs to pay you will give at the beginning of each year up to the maximum for gift tax of principle to your son. This will reduce the principle by $12,000 or more (depending on the number of people involved.
If you feel the need to give your house over to your son quickly, because of sever health issues and are trying to avoid probate. Talk with your attorney to set up a grantor (or settlers) trust. This will should by-pass probate and there will be no need to worry about gift tax.
I know I made a lot of references to an attorney that you probably did not want to hire, but this is not only a question of taxes, but a question of law as well.
2007-03-19 09:16:30 · answer #2 · answered by jks_mi 3 · 0⤊ 0⤋
Deed it over to him. But do him a favor and don't give him a quitclaim deed. Spend the few extra $$$ and give him a proper grant deed or warranty deed.
A quitclaim deed only serves notice of your abandonment of any claim to the title to the property. It does NOT convey clear title and doesn't even mean you had legal title in the first place.
A quitclaim deed is normally used for two purposes only: Removing a joint owner, typically pursuant to a divorce of division of community property. Or at a tax sale where the county or city gives you a quitclaim deed releasing their claim to the property for the unpaid taxes.
2007-03-18 22:41:09 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 1⤋
With a deed.
Make the deed out to your son and sign it in front of a notary, then take it to the court house in the county the house is in and record it,, and it is then your son's property.
2007-03-18 22:32:23 · answer #4 · answered by Jeff 3 · 0⤊ 0⤋
With a deed but you will need to file a gift tax return Form 709 but no tax will be due. It will show market value and cost basis. He will take over your cost basis to compute gain later unless he lives there.
2007-03-19 09:45:18 · answer #5 · answered by spicertax 5 · 0⤊ 0⤋
go to office max and buy the form called a quit claim deed, fill it out , sign it in front of notary, and file it at the court house at the register of deeds, you will have to pay a fee, and I don't know what state you are in some I don't know how much that will be
2007-03-18 22:33:47 · answer #6 · answered by gunter_thehunter 3 · 0⤊ 1⤋
Use a "Quite Claim Deed" , the state you live in will determine the mechanics of doing so.
2007-03-18 22:30:26 · answer #7 · answered by ? 6 · 0⤊ 1⤋