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#1
08-10-2004, 08:05 AM
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 Re: Quit Claim - trigger income taxes? michaeljc70[at]hotmail.com (MC) wrote: - quote - > I owned a house with a friend. After 1 year, I bought him
This sounds like a simple "return of principal" situation.> out of the house roughly for his downpayment. I got a quit > claim deed. Does he owe taxes or even need to report this? > If so, I have no idea what would be reported as we didn't > even discuss a "sale" price. He got what he put into the > house, minus certain expenses. As long as the buyout is less than the amount he had "invested", this is a nontaxable transaction. However, the quit claim deed will not relieve your friend of any obligation he may have to pay off the mortgage on this property. You (or he) will want to get this corrected ASAP. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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08-10-2004, 07:46 AM
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| Re: Quit Claim - trigger income taxes? michaeljc70[at]hotmail.com (MC) writes: - quote - > I owned a house with a friend. After 1 year, I bought him
Possibly. If he lived there and moved for a "qualifying"> out of the house roughly for his downpayment. I got a quit > claim deed. Does he owe taxes or even need to report this? reason (see Publication 523), there's nothing to report. Otherwise he reports the sale on Schedule D. It sounds like there won't be any taxable gain. Phil Marti Topeka, KS << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
08-07-2004, 08:58 AM
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| Quit Claim - trigger income taxes? I owned a house with a friend. After 1 year, I bought him out of the house roughly for his downpayment. I got a quit claim deed. Does he owe taxes or even need to report this? If so, I have no idea what would be reported as we didn't even discuss a "sale" price. He got what he put into the house, minus certain expenses. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| claim, income, quit, taxes, trigger |
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