Q: Do I need to pay gift taxes transferring ownership to the other joint tenant who paid for the property?
My mother bought a house a few year ago and I co-signed the mortgage with her since she had no credit. As a result both of our names are on the deed as joint tenants. The down payment and monthly payments, however, were all out of her pocket. Now she has paid off the mortgage and wishes to remove my name from the deed. My question is, if I use a quit claim deed to transfer my ownership, do I have to pay gift taxes, considering I didn't pay a penny into the house? And would this affect her cost basis when she sells the house?
A: Did you claim the home on your tax return? The lifetime exclusion is currently $5.35M on gift and estate taxes. Unless this is a very extravagant home, you won't have to pay gift taxes, but you may have to file a gift tax return. Tax basis on a gift is the transferred basis from the donor.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
