If I decide to deed this property to an associate and they decide to refinance the property I gave them, will their be questions raised later on if (by chance) I am audited by the IRS? I have made NO money off the property personally. but their is value in the home. By me not selling the home will that be a red flag to the IRS???
2007-05-25 09:16:22 · 2 answers · asked by ? 5 in Business & Finance ➔ Taxes ➔ United States
I doubt the IRS will come after you unless you have some other reason. As long as the new owners have clear title they will be able to get refinancing
2007-05-25 09:20:38 · answer #1 · answered by hirebookkeeper 6 · 1⤊ 2⤋
That will constitute a gift. If it's worth more than $12,000 a Gift Tax return will be due and you may have Gift Tax to pay depending upon the value of the property. (Deeding the property to another person without compensation is a gift by definition, for whoever gave this answer a thumbs down rating.)
This has NOTHING to do with the recipient refinancing the property. That is an entirely unrelated issue.
2007-05-25 16:27:59 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 1⤋