More details to this question:
I purchased a home in 2006, with a purchase price of $1693K. I would like to refinance the home with my boyfriend, as we were hoping that through the refinance we would own it together, as we would both be on the title and the mortgage. We calculated that with a remaining mortgage balance of 130K, I have paid $33K. He would contribute the same amount to the new loan. After the refinancing, would we also have to pay gift tax? Would both of us be liable or just me?
1 ANSWER
3 Awards
Galina,
After your refinance you'll be tenants in common with joint ownership in the home, unless you specifically ask for the ownership to be in another form.
His, $33K is not a gift, it is a purchase cost. Your basis will become $84,500 as will his.
So long as you are joint debtors on the mortgage you will both be liable, jointly and severely.
Hope that helps!
Don Eby
Answered on Mar 20th, 2013 at 8:16 PM
Call Don at (303) 688-0944 or email at Reception@RobinsonandHenry.com This information is provided AS IS; and does not create Client Relationship.