HOUSE SOLD
I had a house where i was on the loan and mortgage with my mother and stepfather but not on the deed due to my credit. I made all payments and we sold the house. They say my parents will have to claim the earnings from the sale as income on there taxes. Is this true or is there anyway around that? No my parents never lived in the house only i did and paid for everything.
[ Edited by carielee on Date 02/01/2006 ]
did your parents live in the house as their personal residence 2 years out of the last 5
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Is it too late to add yourself to the title, or has settlement already occurred?
SETTLEMENT IS ALREADY DONE AND HOUSE IS SOLD. HOW MUCH WOULD OF IT COST TO ADD MY NAME TO TITLE BEFORE I SOLD IT? THE BANK WAS NO HELP IN THIS MATTER.
carielee,
Glad to meet you.
NewKidInTown, is concuring with what I would recommend, have your parents sigh a Warranty Deed transfering the property to your name. Depending on what the transfer tax is in your state would dictate how much it would cost.
Not sure, but maybe a transfer to a family member would be exempt from the transfer tax. So check with the office at your county court house that transfer of deeds are done at and they can tell you.
That is about it as you would show you as the owner and the funds from the sale would come to you.
John $Cash$ Locke
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ln my opinion, and I am not an expert, you had equitable title to the property. You would be entitled to the profits from the sale and also liable for any taxes due on the sale profits.
Since the settlement has already occurred, you should have a talk with a licensed tax advisor -- preferably one versed in real estate.
Did the title company issue a 1099-S for the sale? If not, and if the property was your primary residence for two of the five years prior to the sale, then have the talk with your tax advisor to make sure that your equitable title in the property will make you qualified for the capital gains exclusion on the sale of your primary residence.
OK
What about drawing up a land installment contract showing the sale from your parents to you and dating it accordingly. This in effect puts in writing the arrangement that you had with your parents.
This would show equitable title in the property and you should be able to take the earnings tax free if you lived there for two years (exceptions may apply).
I saw a deal the other day where a property was quitclaimed by a previous owner to someone else 2 years after he sold it
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If the sale has not taken place yet then I would do as John mentioned and get a deed "and do the land sales contract" That way you show defacto and equitable ownership over the last several years etc..
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StockPro
How do you get a notary to backdate a deed, legally?
However, the notary does note the date on which it was signed...
In Michigan it is not necesary to notarize or record a deed for it to be valid.
You will need to provide a lot more specific information to get the type of response you seek...share the details, it helps us all...
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