QUESTION
Dad and I owned home. Refinanced and took him off both loan and deed. What are my tax options on how we report this?
Asked on Jan 14th, 2013 on Real Estate - Virginia
More details to this question:
We don't care about who gets better tax break. We just want the best tax situation. Home is worth about same now then when bought. 750K. I make 160K he makes less than 50K. We only removed him because bank wouldn't approve refinance with him on it. Condo currently rented out as it has been investment property since we bought. Thanks
1 ANSWER
His interest being transferred to you would probably considered a gift to you, with the gift being his share of the equity in the property. As you are now the sole owner, in the future the income, expenses, etc. will all be reported on your return. A gift tax return may be needed if the gift exceeds the annual exclusion amount of $13,000.
Answered on Jan 22nd, 2013 at 12:37 PM