Q: My brother gave his house to me. Filling out quit claim deed. Not sure what answer to put for transfer tax act 207.526
I am getting a loan to pay off his land contract so I’m not paying him anything. So I’m truth the dollar amount paid to him is zero
A:
You need to complete the Property Transfer Affidavit and file with the appropriate assessing office where your property is located within 45 days of the transfer of ownership, and your basis seems to be $0. However if you are getting a loan to pay off his land contract, the it seems from your facts that the stated purchase price is really the loan amount. You should really execute a purchase agreement as well.
If you found my answer helpful, please indicate as such. Thanks.
A:
If you are paying off an obligation HE had YOU are providing him compensation. HE may also be giving you some sort of gift and that will make computing your basis difficult and complicated. Also, there may be terms of the land contract language that restrict what you can do if you don't pay off the WHOLE land contract with this transaction. There are LOTS of moving parts here that need to be coordinated.
You REALLY need to be getting both legal and accounting advice here to insure you do things properly! This is NOT a 'DIY' project.
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