If a friend A is paying off another B friend's mortgage with proceeds from the sale of his A house, does B have to pay any taxes at all on this?  Assume that in the first scenario B keeps his home in his own name after it's paid off and the friend who's paying off the mortgage has no benefit except living there.    Part 2:  Friend A decides to marry the home owner B.  Does it make sense to marry before or after friend A pays off the mortgage.  Part 3.  Friend A decides instead to merely be part owner of the now fully paid off house.  It will soon be placed in both their names. The tenancy is joint: whoever dies first leaves their share of the house to the survivor. Should this be done before person A pays off Person B's home since B's home is mortgaged and does it make any cents to do this.  Part 3. Friend B tells friend A to put the house in A's name ONLY.  A asks why not just buy it outright for what's owed on the mortgage.  B says fine, but what are the tax advantages either way?
198947
The answer is it depends.  B has income, because A has paid off B's debt.  (Old Colony Trust)  However, A & B can argue that it was a gift.  That means that B won't pay income taxes, but A might have to pay gift taxes.\nPart 2: pay off after marriage, because transactions betwen spouses are tax free (income & gift tax).\nPart 3: are too complicated to be answer simply.  You need someone who is a tax attorney to advise you on this.  If not you can find yourself with a big tax bill when you least expect it.
66809
hey there white rabbit,  I am studying to become a lawyer and I know this answer.  It really depends on who's name is on the mortgage/deed for the house, if both of yours is on the deed/mortgage then 50% of the house will always be yours.  If it is just your significant other's name on the house, if you leave that house under a legal separation and not divorce after 90 days the marital domain will be terminated and you will lose your rights to it.  I SUGGEST THAT YOU GET A LAWYER RIGHT NOW!!  i bet your spouse is trying to sneak one by you. You do not need to tell your spouse you are talking to a lawyer but get advice now, it'd cost like $100 to talk to a lawyer for an hour and many specialize in this sort of thing.  GET A LAWYER NOW!  It may be better off getting a divorce by the way...
541734
Yes, you will need to pay CGT, no matter what you do with the sale proceeds. If you have ever lived in the house, however, you will be eligible for a relief proportional to the period of ownership when you lived in it. In addition, you may be eligible for taper relief of the property as a non-business asset, which reduces your liability depending on how long you've owned it - see table in link (which is a list of FAQ for CGT you may find useful in any case)
135571
If the person has a house, life insurance or assets the debts can be paid from them. If the person is married the debts may be transferred to the spouse (depending on what they are). If the person isn't married, has no money or assets they probably won't be paid but if the people and places owed money have their insurance they may be able to collect from them.
494292
The mortgage is not relevant for taxes.  You need to know your tax basis in the property.  Normally, property received by inheritance is valued at the time of death to determine basis.  This means you should not have a capital gain.  You said the house is "in trust".  If this is true, neither you or your brother own the house, the trust does.  Your ability to "cash out" is determined by the terms of the trust and the decision of the trustee.  You need to consult and attorney who needs to read the trust documents.
23722
First you want to consult with your CPA or tax preparer over any possible tax consequence.\n\nOtherwise, you can buy a new home with the proceeds from the sale of your old just as if it were any other transaction.  You will still have closing costs as related to the escrow/attorney service and transfer fees and whatnot, but you wouldn't *have* to have a mortgage, provided you have enough money to buy it outright.\n\nOnce your house is sold, your escrow company will either provide you a check for the amount of sales price minus fees, or they can wire those funds directly to your bank account (for a fee, of course), or can wire those proceeds to the escrow company for your new purchase, if you've already selected one.\n\nMake sure you are up-front with your agent when buying a new home if you are buying it with the proceeds from your old one, that way he/she can add provisions to the contract in the event the house you're selling falls out.\n\nBetween advice from your tax preparer and your real estate agent, you should be okay.\n\nDon't forgit, an "all cash offer" is attractive to a prospective seller.  Use it to your benefit.
369060
Hello\n\nIf she buys a second home then gives it to someone else in your family, or she gives someone else in your family the money to buy a home; and she dies within 7 years, then inheritance tax may be payable.\n\nIf the total value of her estate, which includes all: property, cars, assets, cash, etc... exceeds £263,000; then 40% tax must be paid on the rest.\n\nIf shes gives away a gift (home, cash, etc...) then lives for 7 years then it is safe from inheritace tax.\n\n\nFor example: \nScenario a)\n - she gives you a £150,000 house;\n - she has another home worth £150,000; \n - she has £63,000 in funds in the bank; and\n - she dies in 6 years.\n\nTotal value of estate: £363,000.\nInheritance tax allowance: £263,000.\nTaxable amount after allowance: £100,000.\nTotal inheritance tax payable: £40,000.\n\nScenario b)\n - she gives you a £150,000 house;\n - she has another home worth £150,000;  \n - she has £63,000 in funds in the bank; and\n - she dies in 10 years.\n\nTotal value of estate: £213,000.\nInheritance tax allowance: £263,000.\nTaxable amount after allowance: £0.\nTotal inheritance tax payable: £0.\n\n\nThanks
526817
If your name is not on the mortgage then you may not be liable for the debts incurred on the house.\n\nIf your name is on the title then you have a stake in the assets of the house.\n\nIt seems you are sitting pretty.
474650
Does she have enough money to buy his half of the equity in the home and keep it?  If not, then the judge will probably require that the home be sold and the proceeds divided equally. As for paying off the family debts, if they go to court, these can be divided, although not necessarily evenly among the two of them.  He could wind up paying off most of the debts if she is not financially able to do so.  Settling out of courts is usually unwise when there are any disputes on property settlements or other aspects of a divorce, although those seem to be taken care of already. But, the property settlement and the debts can cause alot of headaches if they are not agreed to prior to settling, whether it be in or out of court.
482203
Before you pay off your mortgage, please double check the copies of the original documents. More than likely, your accountant did this, but just to be safe, I recommend double checking them. The reason I say this is because even though the prepayment penalty may be illegal, unrecognized, or whatnot, in your state, if you agreed to one on your Mortgage/Deed of Trust or your Note, you are liable for that prepayment fee. It isn't often that you see this, mostly lenders will do it if they think the loan is risky. But my opinion would be that if your accountant suggested paying this off, then it is in your best interest. You will lose the interest deduction on your taxes, but it's possible that you're at a point where it won't make that big of a difference to you financially. Though that is a question that you may consider running by your accountant. Good luck and congrats on being able to pay off your mortgage!
159152
Your question is not completely clear. Do you think you pay a tax when you buy the house? Or are you asking about the yearly property tax that you must pay if you own property in a specific county.?
36232
Do you have any record, written or witnessed that you jointly paid for the house. Any other commitment, definitely it should be in writing or witnessed.\n\nDO your own homework first. The ownership deed carries your name, in case of faulty payment schedule if you are equally responsible then you are equally rewardable too. In case she has not asked you for any CAPEX sharing earlier, that is her fault.\n\nProvided, you have to agree too -leaglly that is, for her to sell the house. If that deed gives you the right then she cannot keep you out. In fact did you share any or part of the equity, and have record or receipt to show for it? If yes, then it is an open and shut case. She will loose more money than you even by going to court, she had waited long for this and now it she pays a price with a premium.\n\nOtherwise, you have no say/no record whatsoever, just remember that the cost of 1.5" of patch and two moons was that much and hope you got your moneys worth.
371587
When you list a beneficiary, you have the opportunity to list a contingent beneficiary.  If she listed a person as the contingent beneficiary, then that person gets the payout.  \n\nIf she didn't, then the estate of the mother gets the payout, and it gets distributed just like the rest of the assets in her will.  If she didn't have a will, then it has to go through probate court, and will get assigned as per the state law - most likely to a spouse first, then children - sometimes between spouse and children.
438139
The interest deduction is permitted to a person paying interest on an obligation for which he is liable.  If you and your friend own the property jointly and are both liable on the mortgage loan, you are both able to deduct the amount that you actually paid. Rev. Rul. 71-268.
290181
The debt should be paid by the ex- wife as long as he is not the co-signer.  Since she is no longer able to pay this debt her estate (belongings, car, house, etc.) will be sold and that money will be sent to the debt collectors.  This means that he will not pay (but the creditors still have his name attached to hers and they do not have their money so they are calling to try to get it) and the debt will be settled when her estate is sold.
522136
A quit claim deed does not remove any sort of financial obligations. All that it does is state that you are giving up your right to make a "claim" against the property. If you were on the Note and the Mortgage/Deed of Trust, you are still responsible for that payment. As someone else already stated, make sure to get your name off of any utilities as well. \n\nUnfortunately, there isn't a quick fix to remove your name from the Mortgage/Deed of Trust. There are a few ways to go about it. As someone suggested, you can go to court to be absolved. Your partner can refinance the home on his/her own. Or (if the lender is willing) your partner could do what is called a "simple assumption". Basically, that means that the terms of the note stay the same, but your partner assumes sole responsibility. That will totally depend on your lender. Good luck, I hope this works out for you.
574762
Mortgage interest is taken as an itemized deduction.  You can either itemize, or take what's called a standard deduction, which is an amount the IRS gives you without having to prove anything.  Standard deduction for last year for a married person where both spouses are under 65 was $10,000.  If your mortgage interest plus any other itemized deductions adds up to over $10,000, you should itemize.  If not, the mortgage interest you pay doesn't affect your taxes.\n\nIf you itemize, that amount is subtracted from your income before figuring your taxes.  If you don't itemize, the "standard deduction" is subtracted instead.  That's from your income, not from your taxes.