In 2019 my wife received title to a condominium under the terms of the Uniform Real Property Transfer on Death Act, Virginia Code 64.2-621 et.seq., or its successor statutes (the “Act”). The property has a mortgage and is currently being rented under a property management firm. The rent is sufficient to keep the mortgage current.
While the Transfer on Death (TOD) Deed establishes her as having ownership interest in this property, she has been told by the mortgage holder that she is not liable for the mortgage debt unless she elects to assume the mortgage loan obligation under state law. At this time, she has not assumed the mortgage loan obligation.
Who is responsible for reporting the 1099-MISC on their 2019 income tax my wife or the deceased previous owner?
