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Last year my brother quit claimed the house I live in to me. What taxes may be owed by me or my brother.

Melvindale, MI |

No money or other consideration involved. House was in his name, now mine.

Attorney Answers 3

Posted

There will probably not be a gift tax consequence. However if the equity transferred t you exceeds $14,000, you brother should file a federal gift tax return even though there will be no tax.

DISCLAIMER The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the Commonwealth of Pennsylvania. Responses are based solely on Pennsylvania law unless stated otherwise. When answering questions on AVVO, attorneys are prohibited from directly soliciting business. Don't take this as an indication of lack of interest. James S. Tupitza

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Posted

As Mr. Tupitza indicates, if the value of the home exceeds $14,000, your brother may have to file a federal gift tax return to report the transfer. Unless the home is worth more $5,340,000 there will be no tax , but your brother's lifetime gift tax exclusion amount will be reduced by the value of the home.
Be sure that the deed is properly recorded, notify the assessors office of the transfer (They can provide you with a Property Transfer Affidavit for this notification.), and pay the property taxes as they come due semi-annually.

You haven't identified the other parties involved in this question so I cannot determine whether I may have a conflict in this matter. Should it turn out that I have an attorney-client relationship with any of the other parties, my response to this question will not prevent me from continuing to represent an existing client.

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Posted

There are many parts missing from your question. There could be gift taxes due from your brother, there may be other taxes as well. You need to confer with a competent real estate attorney. John W. Drury

So there is no misunderstanding, this answer does not create an attorney/client relationship and you cannot presume that I am your lawyer or that my advice can be relied upon in any way other than for information only. You will not become my client unless and until you retain me.

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