Capital Gains And Quit Claim Deeds
I have a question concerning capital gains. Here's the scenario:
I have a seller who owns a home free and clear. He is allowing me to be placed on the title via a quit claim deed because he wants to sell the property quick. He only wants $45K but we're going to refi for $53-55K. I have potential buyers who will pay $60K but the key word is "potential." The house is worth $70K.
Once the house is sold (since both of our names will be on the title) who will have to pay the capital gains tax, one or both? Is there any way of relieving him from paying capital gains tax?
Quote:
On 2003-12-29 16:56, bjones6248 wrote:
I have a question concerning capital gains. Here's the scenario:
I have a seller who owns a home free and clear. He is allowing me to be placed on the title via a quit claim deed because he wants to sell the property quick. He only wants $45K but we're going to refi for $53-55K. I have potential buyers who will pay $60K but the key word is "potential." The house is worth $70K.
Once the house is sold (since both of our names will be on the title) who will have to pay the capital gains tax, one or both? Is there any way of relieving him from paying capital gains tax?
I'm pretty sure that if one profits off the sale of a RE investment they will have to pay a capital gains tax unless that individual prove that they have lived in the property as an Owner Occupied 2 out of the last 5 years. Someone correct me if I'm mistaken. However you can check for yourself by going to the IRS website and looking for the section in the Tax Code that will break it down for you; or you can seek a competent CPA in your area.