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quit claim and taxes

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shaffer2124

Guest
What is the name of your state? Florida
My mother recently quit claimed the house to me for $100.00 and now I have to sell it. My question is do I have to pay taxes on everything over the 100.00 or is there a way around this. It is my primary residence now but I can not stay here because my husband does not want to give up his job that is 3 hours away. Is there a way I can sell it and put all the proceeds into a house where i live without being taxed. Please help me I am so lost and with out a clue:confused:
 


ALawyer

Senior Member
Generally the quit claim would be deemed a gift from your mother to you. In a gift situation you would have taken the same tax basis as your mother had in it -- the price she paid for the house plus the cost of capital improvements. If the property had been held by your mother and her husband, and he died, the basis would be further increased or "stepped up" to likely include the value of half the house (although that may vary by state) at the time of his death plus half the purchase price (for her half).

See an accountant for actual numbers. It is important.
 
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shaffer2124

Guest
thank you very much. I tell you I was very confused. If the house was only hers, then I own the whole house right?
 

ALawyer

Senior Member
If she owned the house free and clear, and there were no liens on it, and the quit claim was valid and has been recorded, then you should own the house.

When you try to sell the house and find a buyer one condition of sale that will undoubtedly be built into any sales contract will be for the buyer and his or her bank / mortgage company to be able to get title insurance. The title company will not issue the policy unless you own the land. If you have any doubt, then you'll need a lawyer to check the chain of title now, but my sense is you're okay for now, and unless the title company finds a defect -- in which case you'd have to start scrambling -- you're okay.
 

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