Do I Pay Tax On Quit Claim Deed

[paul brown]

What is the name of your state? FLORIDA

My father set up a quit claim deed to transfer title to his house upon his death. We plan on selling the house. What would my taxes be based on? The total price of home at sell(about$600,00) or what?What is the name of your state?

 

[LdiJ]

What is the name of your state? FLORIDA

My father set up a quit claim deed to transfer title to his house upon his death. We plan on selling the house. What would my taxes be based on? The total price of home at sell(about$600,00) or what?What is the name of your state?

Why did your father set up a quit claim deed to transfer the title?

If you inherit the house then your basis is the fair market value of the house as of the date your father passes. If you sell it immediately that would mean little to no capital gain, and therefore little to no tax.

However, depending on the nature of this quit claim deed, that could possibly change things dramatically. Depending upon the nature of the thing it could put you all on the hook for huge capital gains, and therefore huge capital gains tax.

You all probably need a consult with someone who specializes in estate planning.