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Anonymous asked in Business & FinanceRenting & Real Estate · 1 decade ago

Can you please help me? I am thinking of transferring the title deeds of my house over to my Son. Could you pl?

Can you please help me? I am thinking of transferring the title deeds of my house over to my Son. Could you please let me know what the tax implications would be, if any.I am not selling the house to him, but giving it to him as a gift or sell for ~$1. Thank you for your help.

Update:

Thanks for all help. Just to clarify the house no longer has a mortage on it. The reson for doing it is that I am 63. Right now I am in a good health and working but just in case if in a future would have to go to a nursing home the house would be taken to pay for nursing home stay. Would like to like someting for my son. I understand about 5 year wait, but still a bit confused about tax issue. Not sure if my son would be required to pay income tax.

Update 2:

To clarify I live in Connecticut.

4 Answers

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  • Landlord
    Lv 7
    1 decade ago
    Favorite Answer

    You would only pay the gift taxes, close to 20%.

    You can't do this if there are any liens.

    Also if you do this it is subject to liens to you for 5 years in the event the government issues a lien.

  • 2martins
    1 decade ago

    I think this question is more complicated than you think it is. It MAY depend on your situation, the time period over which you gift it, whether or not you are doing to avoid having to pay for your own nursing home care in the future, etc. It MAY also depend on the state you live in to a certain extent. Is he going to live in the house? Are you? Will you pay rent? I do not think it is safe to rely upon an answer that you get at yahoo answers for free from who knows who to make such a huge decision. Please consult professional advice. If you are poor, there may be a lawyer that will answer this question for you pro bono. look online for the local bar association website. Good luck.

    Source(s): Personal experience and an MBA. My dad was a CPA and even he has made mistakes making decisions with tax implications that a lawyer pointed out later when we had them review the plans before implementing them!
  • Slickterp
    Lv 7
    1 decade ago

    Te difference between the price (if any) and the value of the home is considered a gift. Anything over 13K in 2010 is taxable to YOU (the receiver of a gift is never taxed).

  • real estate guy
    Lv 7
    1 decade ago

    without knowing the reasons, it's hard to answer.

    However, this is NOT a good idea. You are also giving up ALL RIGHTS to the properties.

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