Q: If I quit-claim my home to parents and there is equity is that considered a taxable gift? $70K purchase now $150K.
My parents foreclosed on original home. Didn't qualify due to credit when they wanted to buy again so they asked me to sign for home. I am the only one on both title and mortgage. Credit is good now and they want me to transfer home to their name by quit-claiming deed and having them assume mortgage. However, home has appreciated from $70K to $150K and I am concerned that there might be some tax implication as I am afraid that this could be perceived as a taxable gift. Am I correct or can I make this transfer without concern about taxes?
Whether or not it's taxable depends on your specific situation. A gift tax return may need to be filed. Best to talk to a good CPA about this.
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