• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Transfer of ownership of residence

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

B

Blackadder

Guest
What is the name of your state? Florida.

A house is jointly owned by a mother and two daughters, each owning 1/3rd. All their names appear on the deed. However, the mother was the only one who actually invested funds to purchase the house. The two daughters would like to convey back to the mother their 1/3rd ownership in the house, so that the mother can sell the house without the daughters incurring any tax liability. My questions are these: 1) Can the daughters convey their interests back to the mother by notorized letter of intent to do so? 2) Must the deed now be changed to exclude the daughters? And if so, how is that done? 3) Does the yearly gift limit apply to this transfer between the daughters and the mother?
 


nextwife

Senior Member
As they want NO money in exchange for their interest in the proprty, the easiest way to do this is to have them Quit Claim their interest to mom. This DOES change the deed, as their interests have been deeded out.

And, if mom is selling in the near future, they should have the title company that will be handling the title handle the recording so that QCs don't disappear into the "recording gap" and can't be shown for weeks. If title co records,
they can obtain recording data immediately and verify the doc is of record.

I do not believe this creates a taxable event, BUT they should speak to an accountant. I don't know what dollars are involved for each.
 

nextwife

Senior Member
Just for clarification, one or two Quit Claim deeds can be prepared (either they sign the same one, if convenient, or they each sign one). Check with the Register of Deeds office and see whether a Transfer Return form or any other form must also accompany the Deed(s) in order to record. In our county, for example, one CANNOT record a deed unless the Trasfer Tax form is also included, even in Tax Exempt transactions.
 
Last edited:
A

advicesucks

Guest
you didnt post enough facts, but if theylived in the house for 2 out of the past 5 years, $250,000 in capital gains is excluded....so if they will be making less than a $250k profit, there is no capital gains. Speak to your CPA.
 

nextwife

Senior Member
"I do not believe this creates a taxable event, BUT they should speak to an accountant. I don't know what dollars are involved for each."

Isn't that the same advice? They may not have lived there at all which means the $250,000 exemption would not apply, the house could be worth $100,000 or $1,000,000. So they WERE advised to speak to an accountant who can review whether this creates a taxable event.
 
Last edited:

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top