Quick Claim Taxes

Comments(8)

• 
  ray_higdon14th March, 2005

  Is she buying you out?
  [addsig]

• 
  palittle14th March, 2005

  Yes, she is buying me out--and I will be getting some profit from the deal.

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  ray_higdon15th March, 2005

  I would imagine you would have to claim that as capital gains, then just quit claim your name off the deed. Are you on the loan? As I am not a CPA, I would reccomend consulting one.
  [addsig]

• 
  palittle15th March, 2005

  Yes, I am on the loan. Thanks for your advice.

• 
  NewKidinTown218th March, 2005

  A quit claim deed will remove your name from the title, but it does not take your name off the mortgage note. You would still be liable for the loan if your partner defaults.
  
  Better to have the new partners refinance to get your name off the current mortgage note.

• 
  wexeter17th March, 2005

  You would qualify for long-term capital gain tax rates, so your maximum Federal capital gain tax rate would be 15% and what ever your state income tax rate would be.
  [addsig]

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  edmeyer17th March, 2005

  Normally, there are two components with capital gains tax. Under current law the depreciation component is taxed (Federal) at 25% and the gain due to appreciation will be taxed at 15%. I am not sure if converting the rental to primary residence alters this.

• 
  chevi9718th March, 2005

  Thanks for the info, I just need to clarify that...thanks
  
  Quote:
  On 2005-03-17 20:32, edmeyer wrote:
  Normally, there are two components with capital gains tax. Under current law the depreciation component is taxed (Federal) at 25% and the gain due to appreciation will be taxed at 15%. I am not sure if converting the rental to primary residence alters this.