State: Arizona
Hi all, I am in Arizona and my mother is looking to move here. I am looking at houses here for her. My realtor told me it is easier just to have my name on all the paperwork, then transfer the deed to her via a "quit claim" deed. My mother is skeptical after doing some extensive "google research" lol, and is convinced that this will end up with us on the hook for some major taxes. Google AI mentioned "Capital Gains Taxes" and "Gift tax reporting". Because of this she wants the realtor to mail her all the documents so she can sign them that way and avoid putting my name on it entirely. Obviously, this is far less inconvenient that having me sign them (my mom isn't handy with email or docusign). But I don't want to dismiss her worries; what are the tax implications of a quit claim and is there a better way of doing this?
Buying a house for my mother out-of-state: can I do all the paperwork and buy it in my name, then use a "quit claim" to transfer it to my mother's name when she moves here? What are the tax implications?
byu/drhuggables intax
Posted by drhuggables
3 Comments
Her buying it in her own name is the normal way of doing this. I frankly have no idea why your realtor is suggesting this. Is there a mortgage involved? Who’s actually paying for the house?
Why not just use power of attorney?
On top of any possible gift tax return that would need to be filed, there would be a second set of Real Estate Excise Taxes on the second transfer.
My Mom died and willed the property to her trust (first transfer, Taxes and fees Paid), the Trust sx months later distributed it to the beneficiary, second transfer, taxes and fees paid.