Posted by JHyre in Ohio on October 19, 2003 at 10:28:18:
Gift tax applies due to the extent of any equity over $11k in the property. If the debt relief is greater than your basis in the property, you have a gain, probably capital in nature. If the debt relief is less than your basis, you may have a loss for income tax purposes (e.g. - abandonment loss).
Transfer TIC interest through Quit Claim Deed - Posted by J. Nelson
Posted by J. Nelson on October 17, 2003 at 02:54:20:
I currently own 50% interest held as tenant in common in a residential home where I do not reside and have a joint mortgage with other 50% tenant (a relative). I would like to transfer my 50% interest to the co-tenant so she can refinance the mortgage under her name and be soley responsible for the mortgage. If I transfer via quit claim deed, am I responsible for a gift tax or debt relief tax? Do I report any capital gain?