_JP wrote:
- quote -

It's possible you might end up inadvertently triggering gift tax filings
for both you and your mother. Talk with a local attorney! An overview of
gift tax is available in IRS Publication 950 (www.irs.gov) but self-help
can be costly, considering the different estate & tax issues involved.

-Tad

Mr. ABC, single male, has a house. He bought it about 5 years ago putting
down about 20% (therefore the bank owns the house mostly, not Mr. ABC, to be
more exact).

Early this year, when the interest rate was so low, he decided to get it
refinanced. He found out that his mother's credit rate was much better, so
he decided to let his mother get the loan. He was allowed to do so because
his mother actually has been living with him and was still working (=
income). In order to accomplish this, he had to put his mother into the
title, which was a surprisingly (for him at least) simple process of filling
up a half page form at the city hall, with no tax implication.

So, now he and his mother co-owns the house, and they saved a couple hundred
bucks a month thanks to the new low interest rate. Everyone is happy.
However, he's wondering if there will be any problem in the future. His main
concern is how hard it is going to be to take his mother off the title. Is
he, or his mother, going to get hit by tax (gift tax)?


_JP