Home Mortgage

Question

jayme78 asks:

My father and I bought a house together about 8 years ago. The deed was split 50/50, but I am the only person that ever made payments on the house. He was only on the loan. About a year ago I refinanced under only my name and then as a wedding gift, he did a quitclaim deed into my name. The house has appreciated quite a bit. Now the house is in my name as well as my husbands. Are we going ot have to pay a huge tax due the that half of the deed being gifted to me?

Answer

smithsussane answers:

As half of the property was deeded to you as a gift, there are chances that your father will have to pay a gift tax. However, you should note that there are certain exemptions as well while paying the gift tax. Gift transfers worth $12,000 per person in a year are not subject to gift tax. Thus, an individual can make gifts up to this amount to as many people as he/she wishes to in a year. Apart from this, there is a lifetime gifting limit of $1,000,000 before a gift tax is incurred.

Source:MortgageFit.com

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