legal/financial advice needed

[BuMMiE]

So the current situation is that the house that I'm living in is currently under my both my father and mother's name. My father wants to remove his name and add my name to the house. So that would give me and my mom joint ownership of the house. Is there any way to go about this without having to pay taxes (on a gift or sale)?

Edit: added topic summary

 

[kranky]

Is there a mortgage on the home with your dad's name on it, or just the property deed?

 

[PokerGuy]

Originally posted by: BuMMiE
So the current situation is that the house that I'm living in is currently under my both my father and mother's name. My father wants to remove his name and add my name to the house. So that would give me and my mom joint ownership of the house. Is there any way to go about this without having to pay taxes (on a gift or sale)?

Edit: added topic summary

Just to make sure I understand your question, is there a mortgage on the house with your parents listed on the mortgage, or is the house paid for with the two of their names on the deed?

If their names are on the mortage, you won't be able to just add/remove names, you have to refinance the house and create a new mortgage with your name (and your moms name) on it.

As far as the deed goes, your dad can deed his portion of the equity in the house over to you, but that would be considered a gift. You would not owe taxes on the gift, and unless the house is extremely expensive, your dad should be able to avoid gift taxes as well.....

 

[Capt Caveman]

Get a real estate attorney

/thread

 

[Mursilis]

Originally posted by: Capt Caveman
Get a real estate attorney ...

...with a good working knowledge of state and federal tax issues.

 

[AlienCraft]

Originally posted by: Capt Caveman
Get an Estate attorney

/thread

FIXEDit for you.

 

[Injury]

Originally posted by: AlienCraft

Originally posted by: Capt Caveman
Get an Estate attorney

/thread

FIXEDit for you.

:thumbsup:


Best advice you will get in this thread. It may cost you a few hundred dollars to do this, but that's better than finding out a few years down the road that you have thousands of dollars worth of overdue taxes and fines being shoved down your throat.

 

[BuMMiE]

There is no mortgage on the house. I believe it has been paid off in full. I did meet with an estate lawyer and I'm not sure if what he recommended was the best way. He had two ways of going about this:
1) Give his share over to me as a gift and pay taxes on the gift. He said that 90% of the people don't pay the taxes on it, but I think that's illegal.
2) Sell his share to me and provide me the loan with the lowest interest allowed. Then my dad would only "collect" the interest and pay taxes on the interest collected minus the maximum amount that you can give as a non-taxable gift.

Originally posted by: PokerGuy

Originally posted by: BuMMiE
So the current situation is that the house that I'm living in is currently under my both my father and mother's name. My father wants to remove his name and add my name to the house. So that would give me and my mom joint ownership of the house. Is there any way to go about this without having to pay taxes (on a gift or sale)?

PokerGuy : How would I legally avoid paying taxes on the gift?

Edit: added topic summary

Just to make sure I understand your question, is there a mortgage on the house with your parents listed on the mortgage, or is the house paid for with the two of their names on the deed?

If their names are on the mortage, you won't be able to just add/remove names, you have to refinance the house and create a new mortgage with your name (and your moms name) on it.

As far as the deed goes, your dad can deed his portion of the equity in the house over to you, but that would be considered a gift. You would not owe taxes on the gift, and unless the house is extremely expensive, your dad should be able to avoid gift taxes as well.....

 

[Gooberlx2]

Concerning the gift idea: IIRC, you can receive up to $11k, per year, per parent of untaxed gift. So if your dad was comfortable with transferring $11k equity per year to your name, you might be able to get away without paying taxes (aside from real estate taxes). Of course, if he has $150k to transfer over, I dunno if you all want to spend 13+ years transferring equities.

 

[alkemyst]

You will need to hire an attorney....we can't be sure as these laws are complex and even regional.