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My mother transferred her house to me a few years ago. We used a quitclaim lead. Will we have to pay any sort of gift taxes on the equity in the home if she passes away? My mother still owes about $80,500 on the mortgage. And we have invested a lot of money fixing up the house. Is there a better way of going about this?
6 ANSWERS
Personal Injury Attorney serving Greenville, SC
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The Greene Law Firm, P.A.
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You will not have to pay estate tax. It depends on the net equity to you whether or not you should pay gift tax. If so it should have been paid in the year the property was transferred.
Answered on Apr 21st, 2015 at 10:26 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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There is a $5,000,000 gift tax lifetime exemption so - unless it's a really, really nice house - you won't have any problem with the gift tax.
Answered on Apr 21st, 2015 at 2:46 AM
It is highly unlikely you will need to pay gift taxes. If you did need to pay gift taxes, they would have been due at the time of the quit claim deed, not when you sell the property. In any event, unless your mother made gifts totaling many millions of dollars, there is no gift tax.
Answered on Apr 17th, 2015 at 3:17 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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You must file a gift tax return. Do so now. Do not wait for her to die. She should sign it, or you can sign on her behalf. Fortunately, no tax will be due. Assuming your mother's net worth is less than $5 million (including the house), she will never have to pay gift or estate tax.
Answered on Apr 17th, 2015 at 3:16 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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There may well be and you have hinted at many issues. You should be conferring with an attorney on your mother's estate plan and how to most efficiently and with the least tax pass property as intended at her passing.
Answered on Apr 17th, 2015 at 12:34 PM
Chapter 7 Bankruptcy Attorney serving Lisle, IL
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Mankus & Marchan, Ltd.
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Your mother had to file a gift tax return (IRS Form 709) in the year she transferred the house to you, and pay any gift tax above the exclusion.
Answered on Apr 17th, 2015 at 12:34 PM