Deed transfer tax when divorce

[lilianlaw]

What is the name of your state (only U.S. law)? - NY
The husband wants to transfer the jointly residence house of his and his wife to his wife,
for the price of only $10.
They want to sign the divorce settlement and deed transfer on the same day.

Is it possible for only $10? If so, how much tax will be ? What is the tax based on, the half market value of the house or the price?

 

[Ohiogal]

What is the name of your state (only U.S. law)? - NY
The husband wants to transfer the jointly residence house of his and his wife to his wife,
for the price of only $10.
They want to sign the divorce settlement and deed transfer on the same day.

Is it possible for only $10? If so, how much tax will be ? What is the tax based on, the half market value of the house or the price?

Is there a mortgage on the house?

 

[lilianlaw]

Is there a mortgage on the house?

No. There is no mortagage on the house.

 

[mistoffolees]

No. There is no mortagage on the house.

Then there is obviously something important missing from the story. Why is he giving the house to his wife for $10?

 

[lilianlaw]

Then there is obviously something important missing from the story. Why is he giving the house to his wife for $10?

First, the wife doesn't want to pay for the house. She just wants to own it by herself after divorce.

Second, the husband doesn't care the money. He just wants to divorce. He agree to transfer the deed to her wife even without payment.

Third, considering there may be tax based on the half value of the house in the absence of establishing th consideration. (Section 23-03(d0(3) of Title 19 of the Rules of the City of New York )The husband wants to transfer for only $10. So he wonder if the tax will be caculated on the $10 in this condition.

 

[LdiJ]

Then there is obviously something important missing from the story. Why is he giving the house to his wife for $10?

And selling the house to his wife for $10.00 can have tax ramifications as well. If he is exchanging the house for other marital assets he doesn't need to "sell" the house to his wife, he just needs to quit claim the house to his wife.

 

[lilianlaw]

And selling the house to his wife for $10.00 can have tax ramifications as well. If he is exchanging the house for other marital assets he doesn't need to "sell" the house to his wife, he just needs to quit claim the house to his wife.

Tax is based on what, payment/consideration of $10? So it will be ok for the taxpayer. That is what the husband wants.

He just wants to transfer the house to his wife. So his wife will consent to sign the divorce settlement.

 

[LdiJ]

Tax is based on what, payment/consideration of $10? So it will be ok for the taxpayer. That is what the husband wants.

He just wants to transfer the house to his wife. So his wife will consent to sign the divorce settlement.

The tax issues are not immediate issues...they are future issues related either to basis, or gift tax, or even possibly estate tax.

He needs to stop playing around with "selling" the house to her. He just needs to sign a quit claim deed. He is making things too complicated.

 

[lilianlaw]

The tax issues are not immediate issues...they are future issues related either to basis, or gift tax, or even possibly estate tax.

He needs to stop playing around with "selling" the house to her. He just needs to sign a quit claim deed. He is making things too complicated.

Quit claim deed? He is preparing for deed transfer and filling NYC RPT.

 

[Ohiogal]

Quit claim deed? He is preparing for deed transfer and filling NYC RPT.

Are you the new girlfriend?

 

[lilianlaw]

The tax issues are not immediate issues...they are future issues related either to basis, or gift tax, or even possibly estate tax.

He needs to stop playing around with "selling" the house to her. He just needs to sign a quit claim deed. He is making things too complicated.

Got it. So there will be no tax for quitclaim deed? And the wife will have whaterever the husband has, that is the other 50% of the house ?
Thanks

 

[lilianlaw]

Are you the new girlfriend?

Joking. Such senior member as you summon such junior issue.

 

[seniorjudge]

Joking. Such senior member as you summon such junior issue.

Okay, so you're the new girlfriend.

We like to know that stuff; it helps evaluate the "facts" we get.

Now...a question.

Is there a transfer tax in your state?

If so, what is the statute number?

 

[lilianlaw]

Okay, so you're the new girlfriend.

We like to know that stuff; it helps evaluate the "facts" we get.

Now...a question.

Is there a transfer tax in your state?

If so, what is the statute number?

Your honor. I am not.

Yes, there is transfer tax. And it is depend on the consideration of the transfer.

 

[seniorjudge]

Your honor. I am not.

Yes, there is transfer tax. And it is depend on the consideration of the transfer.

What is the statute number?