Results 1 to 2 of 2
  1. #1
    Join Date
    Aug 2006
    Posts
    1

    Default Conveyance by quit claim deed and income taxes

    Hi
    I am in a Texas general partnership with one other partner. We flip houses and will be obtaining mortgages in my name (better credit). I am concerned with the income tax implications of doing this, since the houses (and presumably all the taxable income on sale) will be in my name. I have been advised to quit claim the house to the partnership after we close the mortgage, and then have the partnership sell it (we would then divide the profits/tax liability according to our ownership %).

    Is this a realistic approach?...won't this be an issue for the mortgage company?
    If this is feasible, do I need a lawyer or can I just download a deed and have it recorded?

    Thanks!

  2. #2
    Join Date
    Jul 2006
    Posts
    5,437

    Default Re: Quit claim deed income tax issue

    Quote Quoting cansley
    View Post
    Hi
    I am in a Texas general partnership with one other partner. We flip houses and will be obtaining mortgages in my name (better credit). I am concerned with the income tax implications of doing this, since the houses (and presumably all the taxable income on sale) will be in my name. I have been advised to quit claim the house to the partnership after we close the mortgage, and then have the partnership sell it (we would then divide the profits/tax liability according to our ownership %).

    Is this a realistic approach?...won't this be an issue for the mortgage company?
    If this is feasible, do I need a lawyer or can I just download a deed and have it recorded? You should have the title company that you use to give you preliminary title reports on these transactions to do the deeds; you are asking for trouble if you do it yourself....

    Thanks!

    I am NOT a tax lawyer.

    But I am not sure the IRS would fall for this. Ask a tax accountant.

    By the way, it looks you are getting all the risk and half the profit. What is wrong with this picture?

    1. Sponsored Links
       

Similar Threads

  1. Deeds - Quitclaim: Quit Claim Deed Transfer To A Warranty Deed
    By DavidShannon in forum Real Estate Ownership and Title
    Replies: 2
    Last Post: 01-12-2008, 10:11 AM
  2. Deeds - Quitclaim: Can A Quit Claim Deed Be Used To Release A Deed Of Trust in California
    By titanrocket in forum Real Estate Ownership and Title
    Replies: 1
    Last Post: 01-03-2008, 04:00 PM
  3. Deeds - Quitclaim: Quit Claim Deed Vs. Deed Of Gift
    By ladyinred in forum Real Estate Ownership and Title
    Replies: 1
    Last Post: 12-19-2007, 11:35 AM
  4. Deeds - Quitclaim: Conveyance By Quit Claim Deed
    By irishrose in forum Real Estate Ownership and Title
    Replies: 2
    Last Post: 10-19-2007, 04:09 PM
  5. Deeds - Quitclaim: False Fraud claim of Quit Claim Deed
    By Vanessa in forum Real Estate Ownership and Title
    Replies: 4
    Last Post: 10-06-2006, 10:07 PM
 
 
Sponsored Links

Legal Help, Information and Resources