Family transfer of real estate properties

[bearishgurl]

[quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-

[edna_mode]

Mooki: are you doing this primarily for emotional or financial reasons?

Forgive me if my following questions seem really direct. Know that they are asked with the sincerest wish to help you and your mom to the best possible outcome. It would be terrible if you were to drain your finances trying to do this, fail, and then not have resources to support yourself or your mom.

I have seen close friends try to do what you are doing for the sake of family harmony. They thought they were preserving the peace, but really when the fit hit the shan, the party with the good financial habits were shafted with massive responsibilities right in at the early stages of career building.

Worst case scenario? How long can you afford two mortgages if you can’t find a good renter for mom’s property? You think it’s hard dealing with losing one house you live in? Try getting rid a house in a jurisdiction you know nothing about. Think of the travel costs to go there regularly, because you’d want to go check up on how well the property manager’s doing his job, right? What about handling eviction of a bad renter by remote? Do you have time or energy or willingness to do this?

And if you think this will preserve family harmony, I invite you to consider past interactions. You say your mom owes you $25K. What will you do if she asks for more money for her living expenses when you are trying to float two mortgages? Will you be able to handle that situation as your best self?

Please, please be very careful. Even before you consider the details of implementation, are you enabling the best outcome for everyone with your plan?

[edna_mode]

Mooki: are you doing this primarily for emotional or financial reasons?

Forgive me if my following questions seem really direct. Know that they are asked with the sincerest wish to help you and your mom to the best possible outcome. It would be terrible if you were to drain your finances trying to do this, fail, and then not have resources to support yourself or your mom.

I have seen close friends try to do what you are doing for the sake of family harmony. They thought they were preserving the peace, but really when the fit hit the shan, the party with the good financial habits were shafted with massive responsibilities right in at the early stages of career building.

Worst case scenario? How long can you afford two mortgages if you can’t find a good renter for mom’s property? You think it’s hard dealing with losing one house you live in? Try getting rid a house in a jurisdiction you know nothing about. Think of the travel costs to go there regularly, because you’d want to go check up on how well the property manager’s doing his job, right? What about handling eviction of a bad renter by remote? Do you have time or energy or willingness to do this?

And if you think this will preserve family harmony, I invite you to consider past interactions. You say your mom owes you $25K. What will you do if she asks for more money for her living expenses when you are trying to float two mortgages? Will you be able to handle that situation as your best self?

Please, please be very careful. Even before you consider the details of implementation, are you enabling the best outcome for everyone with your plan?

[edna_mode]

Mooki: are you doing this primarily for emotional or financial reasons?

Forgive me if my following questions seem really direct. Know that they are asked with the sincerest wish to help you and your mom to the best possible outcome. It would be terrible if you were to drain your finances trying to do this, fail, and then not have resources to support yourself or your mom.

I have seen close friends try to do what you are doing for the sake of family harmony. They thought they were preserving the peace, but really when the fit hit the shan, the party with the good financial habits were shafted with massive responsibilities right in at the early stages of career building.

Worst case scenario? How long can you afford two mortgages if you can’t find a good renter for mom’s property? You think it’s hard dealing with losing one house you live in? Try getting rid a house in a jurisdiction you know nothing about. Think of the travel costs to go there regularly, because you’d want to go check up on how well the property manager’s doing his job, right? What about handling eviction of a bad renter by remote? Do you have time or energy or willingness to do this?

And if you think this will preserve family harmony, I invite you to consider past interactions. You say your mom owes you $25K. What will you do if she asks for more money for her living expenses when you are trying to float two mortgages? Will you be able to handle that situation as your best self?

Please, please be very careful. Even before you consider the details of implementation, are you enabling the best outcome for everyone with your plan?

[edna_mode]

Mooki: are you doing this primarily for emotional or financial reasons?

Forgive me if my following questions seem really direct. Know that they are asked with the sincerest wish to help you and your mom to the best possible outcome. It would be terrible if you were to drain your finances trying to do this, fail, and then not have resources to support yourself or your mom.

I have seen close friends try to do what you are doing for the sake of family harmony. They thought they were preserving the peace, but really when the fit hit the shan, the party with the good financial habits were shafted with massive responsibilities right in at the early stages of career building.

Worst case scenario? How long can you afford two mortgages if you can’t find a good renter for mom’s property? You think it’s hard dealing with losing one house you live in? Try getting rid a house in a jurisdiction you know nothing about. Think of the travel costs to go there regularly, because you’d want to go check up on how well the property manager’s doing his job, right? What about handling eviction of a bad renter by remote? Do you have time or energy or willingness to do this?

And if you think this will preserve family harmony, I invite you to consider past interactions. You say your mom owes you $25K. What will you do if she asks for more money for her living expenses when you are trying to float two mortgages? Will you be able to handle that situation as your best self?

Please, please be very careful. Even before you consider the details of implementation, are you enabling the best outcome for everyone with your plan?

[edna_mode]

Mooki: are you doing this primarily for emotional or financial reasons?

Forgive me if my following questions seem really direct. Know that they are asked with the sincerest wish to help you and your mom to the best possible outcome. It would be terrible if you were to drain your finances trying to do this, fail, and then not have resources to support yourself or your mom.

I have seen close friends try to do what you are doing for the sake of family harmony. They thought they were preserving the peace, but really when the fit hit the shan, the party with the good financial habits were shafted with massive responsibilities right in at the early stages of career building.

Worst case scenario? How long can you afford two mortgages if you can’t find a good renter for mom’s property? You think it’s hard dealing with losing one house you live in? Try getting rid a house in a jurisdiction you know nothing about. Think of the travel costs to go there regularly, because you’d want to go check up on how well the property manager’s doing his job, right? What about handling eviction of a bad renter by remote? Do you have time or energy or willingness to do this?

And if you think this will preserve family harmony, I invite you to consider past interactions. You say your mom owes you $25K. What will you do if she asks for more money for her living expenses when you are trying to float two mortgages? Will you be able to handle that situation as your best self?

Please, please be very careful. Even before you consider the details of implementation, are you enabling the best outcome for everyone with your plan?

[joec]

[quote=bearishgurl][quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-[/quote]

This is still confusing to me since I’m sure giving someone stock (non-sold/unrealized gains) is definitely a gift as well as automobiles, stock options (also unrealized), a collectible collection or pretty much anything else.

Is it simply just real property then? What about investment property or business interest in properties?

[joec]

[quote=bearishgurl][quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-[/quote]

This is still confusing to me since I’m sure giving someone stock (non-sold/unrealized gains) is definitely a gift as well as automobiles, stock options (also unrealized), a collectible collection or pretty much anything else.

Is it simply just real property then? What about investment property or business interest in properties?

[joec]

[quote=bearishgurl][quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-[/quote]

This is still confusing to me since I’m sure giving someone stock (non-sold/unrealized gains) is definitely a gift as well as automobiles, stock options (also unrealized), a collectible collection or pretty much anything else.

Is it simply just real property then? What about investment property or business interest in properties?

[joec]

[quote=bearishgurl][quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-[/quote]

This is still confusing to me since I’m sure giving someone stock (non-sold/unrealized gains) is definitely a gift as well as automobiles, stock options (also unrealized), a collectible collection or pretty much anything else.

Is it simply just real property then? What about investment property or business interest in properties?

[joec]

[quote=bearishgurl][quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-[/quote]

This is still confusing to me since I’m sure giving someone stock (non-sold/unrealized gains) is definitely a gift as well as automobiles, stock options (also unrealized), a collectible collection or pretty much anything else.

Is it simply just real property then? What about investment property or business interest in properties?

[Mooki]

It is very helpful to me to see the second opinions here. Yes I have been helping my mom because she is my mom. Given that I will always help her, I want to find a way that will yield the best (or least negative) outcome for both me and her.

Her current mortgage is only about $600 a month. My car loan is $1000. With my car loan I already pre-qual for enough to buy a house I want in San Diego. When my car loan goes away and I take over her mortgage, I’m actually having a lower debt. So I assume I will still qualify for the same loan amount here. What am I missing? The GA house is far from under water.

[Mooki]

It is very helpful to me to see the second opinions here. Yes I have been helping my mom because she is my mom. Given that I will always help her, I want to find a way that will yield the best (or least negative) outcome for both me and her.

Her current mortgage is only about $600 a month. My car loan is $1000. With my car loan I already pre-qual for enough to buy a house I want in San Diego. When my car loan goes away and I take over her mortgage, I’m actually having a lower debt. So I assume I will still qualify for the same loan amount here. What am I missing? The GA house is far from under water.

[Mooki]

It is very helpful to me to see the second opinions here. Yes I have been helping my mom because she is my mom. Given that I will always help her, I want to find a way that will yield the best (or least negative) outcome for both me and her.

Her current mortgage is only about $600 a month. My car loan is $1000. With my car loan I already pre-qual for enough to buy a house I want in San Diego. When my car loan goes away and I take over her mortgage, I’m actually having a lower debt. So I assume I will still qualify for the same loan amount here. What am I missing? The GA house is far from under water.

[Mooki]

It is very helpful to me to see the second opinions here. Yes I have been helping my mom because she is my mom. Given that I will always help her, I want to find a way that will yield the best (or least negative) outcome for both me and her.

Her current mortgage is only about $600 a month. My car loan is $1000. With my car loan I already pre-qual for enough to buy a house I want in San Diego. When my car loan goes away and I take over her mortgage, I’m actually having a lower debt. So I assume I will still qualify for the same loan amount here. What am I missing? The GA house is far from under water.

[Author]

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