Q: My father passed away in March. He signed the house over to me in a quit claim do I claim the house on my taxes?
I am currently living there and paying the payment on the house. Will this benefit me or not? Will it be worth it?
A:
In California, when you receive property through a quitclaim deed, such as a house, it becomes your asset and you need to consider this in your tax filings. If you are living in the house and paying the mortgage, you may be able to claim certain tax benefits such as mortgage interest deduction.
However, there are also tax implications for inheriting property, including potential capital gains tax if you decide to sell the house in the future. The tax basis of the property is typically its fair market value at the time of your father's death.
It's important to keep records of the quitclaim deed transfer and any payments or expenses related to the house. Consulting with a tax professional is a good step to understand the full scope of your tax obligations and benefits related to inheriting and owning the house.
Every situation is unique, and tax laws can be complex. Seeking personalized advice will help you make the best decisions regarding your tax filings and the property.
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