krzykc
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I would obtain the cash at a later time so you can avoid reporting it. For now just transfer the deed over and say she paid a 1.00. that you dont have to report. let me know if you need more help. i work in the title insurance field. |
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Christy
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You definitely have to report it to the IRS for tax purposes. Any income that you make from selling your home is considered taxable income - cash or not. The only way you won't get taxed with it is if you use it right away to purchase another home. If you don't report it, you'll be in a lot of trouble with the IRS because they WILL find out. I wouldn't risk it. |
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Amanda H
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First off, this is major FRAUD.
Second, when you quit claim something, they make you do an 'excise tax affidavit' which specifically says how much the person is paying for the home. So you'd have to outright lie about what she's paying.
Third, they may still make you pay excise tax on the market value even if you claim she didn't pay you a dime, becuase that's just how it works-- there are only a few very specific cases which they allow you to not pay excise tax. (1% of the selling price.)
They wouldn't neccessarily know, unless somehow it came to light that you had a lot of money in your account that was unnaccounted for... .like if you go pay cash for a vehicle, and its over $10K, they make you fill out forms, and this creates a paper trail.
If you've owned the house more than two years and it was your primary residence, you dont pay income tax anyways-- ONLY excise tax (the 1%). Its never good to lie to the IRS-- thats Fraud and its a criminal charge, not a civil one.
edited to add: I forgot, the others are right about it being your daughter... you should be able to legally do this without any issues...consult your tax guy. :-) |
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Tim B
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It is called a QUIT CLAIM DEED. You only have to pay taxes on the profit. I wouldn't worry about the IRS catching you. You are allowed to give a child a one time only gift. |
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shmoop84
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First off, Christy's repsonse is incorrect. If the home was your primary residence two of the past 5 years, a single person can make up to $250,000 in profit tax free and $500,000 for married couples. It has been this way since the early 90's.
So since she has the cash to buy, why not just SELL it to her (on paper) for what she is actually going to pay for it? You wont pay a dime of capital gains taxes.
What I would be more concerned about on this unreported cash deal you are describing is when you deposit the money with your financial institution. Anything over $10,000 is reported to the IRS as taxable income. Dont you want the paperwork showing this was your primary residence sale (which we are all assuming here) and not other income and have to go through all that?
the only reason to QUIT CLAIM your daughter on to the property is if she DIDNT have the money down and also wanted to save on closing costs. |
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Du Hast mich?
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QuitClaim Deed...
Anyhow, you're really trying to avoid somethign that doesn't need avoidance. You are allowed an inter-family "One time Gift" of up to $250k without paying taxes on the funds. It's perfectly legal. Talk to a tax advisor and he/she will tell you the same. |
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HMMMMMM
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D_U_M_B
You're obviously not an investor and this home has been owner occupied.
The first $250,000 is tax free.
If you gift it to your daughter you will trigger a taxable event for her.
Stop trying to get over. |
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money
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The first question is why do you want it in her name? There are other ways to do this w/o giving up your rights to the house. I would think very carefully before doing anything. As far as taxes if you sell it IRS allows 250k gain on primary residence tax free(if single and lived there 5 yrs) If you pass away daug will get the house w/ a step up on basis to current value (no taxes to her) |
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captmhunt
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It is called a "Quit Claim Deed" and any lawyer can draw one up for you for a small fee. You don't have to report it if it was your primary dwelling and you didnt' make a ton of money on it. |
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business creature
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Here is the deal if your quick claim deeding the property you cant pull out money. If your selling the property you are intitled to money at that point.you could sell your property to your daughter for the sum above your loan ammount with for sale by owner. Because if you quick claim deed you need at least a years vesting in the property or proof of it with your daughter on title before you can refinance for the cash out. |
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Bruno
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Can I quit claim deed a house that's paid for, to my niece who will pay me with her personal check the agreed to price, to avoid closing costs to seller and buyer?
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