If my brother Quit Claims a home in his name only over to me will he then have a tax responsibility?
May 31, 2009 in
Questions And Answers
My brother and I purchased a cabin together he signed for the loan due to my credit issues so the deed is in his name alone I provided the funds in Dec of 2007 not quite a year. The cabin is under contract to be sold and is scheduled to close on the 11th can my brother quit claim the property to me and remove himself from the capital gains issue? I am going to re invest the money into another property so I should be fine but I don’t want him to get stuck with a tax bill. Will this work?
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One comment
Stacy's Mom on May 31, 2009 at 11:40 pm
You should ask a tax attorney to confirm this. In a normal sales situation, a person is responsible for taxes until the day they no longer own a home. I would assume this is the same.
For example:
Your brother signs the house over to you on 6/01/08
You sell the house on 9/15/08
Your brother owes property taxes from 1/01/08 to 6/01/08
You owe taxes from 6/02/08 to 9/15/08
New owner owes taxes from 9/16/08 to 12/31/08 .
As for capital gains issues, you need a CPA or tax attorney to advise you. Don’t make big financial decisions based on message board responses.
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