What is the name of your state (only U.S. law)? CALIFORNIA
Purchased current home i reside in 1999. Father initially co-signed on original purchase and was on title and i was soley on mortgage not spouse(bad credit) or anyone else. Legally seperated in 2001 and divorced finalized in 2004. Had to file bankruptcy and mortgage rates were low so father forced me under duress to quit claim myself off title and he is soley on title so he could refi the mortgage and get better rate and pull some equity out for property upgrades. He's been claiming property as rental and claiming depreciation of property. Move foward to present day, bankruptcy off credit scores back up job security and income good to go and now i'm looking at removing him and getting myself and current wife onto said property. Mortgage broker thats assisting me with financing etc. advised me to structure the deal as a no cash out refi flip title via quit claim back into my name like was originally done with father and not generate it as a "SELL" transaction. Father is worried that a depreciation recapture tax will come do. Is that possible if its not done as a "SELL"?
Purchased current home i reside in 1999. Father initially co-signed on original purchase and was on title and i was soley on mortgage not spouse(bad credit) or anyone else. Legally seperated in 2001 and divorced finalized in 2004. Had to file bankruptcy and mortgage rates were low so father forced me under duress to quit claim myself off title and he is soley on title so he could refi the mortgage and get better rate and pull some equity out for property upgrades. He's been claiming property as rental and claiming depreciation of property. Move foward to present day, bankruptcy off credit scores back up job security and income good to go and now i'm looking at removing him and getting myself and current wife onto said property. Mortgage broker thats assisting me with financing etc. advised me to structure the deal as a no cash out refi flip title via quit claim back into my name like was originally done with father and not generate it as a "SELL" transaction. Father is worried that a depreciation recapture tax will come do. Is that possible if its not done as a "SELL"?
