Parents/me are joint owners in a house (they claim as a 2nd home). If they relinquish ownership to me through a quit deed claim are there any tax consequences for them?

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I currently live in the property

Mike9241

Level 15

there are no income tax consequences but they need to file gift tax returns. if the value is over $15,000 Who's on the mortgage?

your basis should you ever sell will be the lower of their basis or Fair Market Value on the date they transfer the deed to you. this means if the property has appreciated since they bought it, you'll get no benefit of that if you sell.

Mike9241

HG77Author

Level 2

Thanks Mike. All 3 of us are currently on the mortgage but it is being refi'd and only my name will remain on the mortgage. The bank will be sending the quit deed claim forms to my parents to sign. So, both the property and mortgage will be moving from a jointly owned situation to a sole ownership (I will claim it as a primary residence going forward).