Gastonia, NC asked in Tax Law for Maryland

Q: If a house in Maryland is given to your child via a quick claim deed are there taxes that have to be paid?

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
  • Tax Law Lawyer
  • Englewood, CO

A: Generally there is no transfer tax on a gift. There will be recording fees. For gift tax it will depend on the value of the property. If the value exceeds $15,000 ($30,000 if both parents are gifting) then a gift tax return is required to be filed. However, no tax will be due if you have enough of your lifetime exemption available, currently $11.4 MM per person.

Also, the term is Quitclaim Deed. You may want to check your current title insurance to see if a inter family gift retains the policy. Also if you have a mortgage a transfer will accelerate the loan.

I would suggest taking the deed to a Maryland real estate attorney for review. One hour's time paid may save you a lot of headaches.

Best of luck.

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