Transferring Home To Relative
Last year I bought a home (conventional 30-year mortgage, 10% down) in my name for my daughter, because my credit was better than hers. She has lived in the home and made all the payments directly to the lender.
Now we want to transfer the home to her so she can claim the homestead exemption. The city she lives in provides a one-page Transfer Affidavit form.
What's the best way to do this? Land Contract? Would a simple Quit Claim Deed do it?
I'm not looking to make a profit, just want to keep taxes as low as possible.
Frank
First off, who is taking the interest deduction for last year? If she is taking the deduction then I would assume you sold the property to her last year and she assumed the mortgage. Otherwise, if you gift the property you have made a gift of the equity to your daughter plus, your down payment. This is somewhat difficult to answer without more information but I hope you get the general idea.
Respectfully,
Clint Coons, Esq.
I have not yet filed my return, but she did file and did NOT claim the interest deduction.
We have done nothing since the closing last summer. She has made PITI pmts directly.
My concern right now is - Michigan "uncaps" the property taxes on transfer of ownership, so the taxes will be going up soon based on the transfer last year from the seller to me. But, to mitigate that somewhat, we want to make sure my daughter gets the (homestead) benefit of being the owner-occupant.