What are the tax implications if I quit claim a property to my brother and sister in-law whom we shared ownership with?
Will there be a capital gains tax invloved in this transaction?
What are the tax implications if I quit claim a property to my brother and sister in-law whom we shared ownership with?
Will there be a capital gains tax invloved in this transaction?
Without more information it is hard to say. If you intend to quitclaim without receiving compensation for your share (or while trying to avoid reporting the compensation) you might be liable for gift taxes. They would not have any basis in relation to the portion of the property they receive as a gift, so their eventual capital gains exposure could increase. If you are planning to quitclaim in return for payment, you could face capital gains tax based upon the difference between your basis in the property and the purchase price. There may be transfer taxes associated with the transfer. There may be ways to avoid being taxed, so you may wish to consult a tax professional.
Thanks ! Can you recommend a good Tax professional I can work with in Northern CA. (Area Code 707)