I am not sure that transferring the home to your name will really make much difference on your credit report. Your credit report for the most part is a record of how you have handled your finances, and whether or not you have made your payments on time, or if you have defaulted on any loans or credit payments.
If you plan to purchase your own home at some point in the future, it may actually be better for you not to have this home in your name. There are many states
and counties and even federal
programs which offer first time home owners some great credits, and by having the home transferred to your name, you may disqualify yourself for any such programs.
There is one other thing you may want to consider here. If at some point in time when your mother passes away, this home would be left to you as her beneficiary
, then you would automatically at that time receive a "stepped up" basis in the home. What that means is that if you eventually inherit this home, your new basis in the home will be whatever the fair market value was on the day you inherit the home. If you then go to sell the home, you will only pay tax on your gain, which is calculated by taking the sale price less your basis.
If your mother signs the deed over to you now, then it is basically considered by the IRS
to be a gift. Your mother would have to file a gift tax return
to report the gift, although no tax would likely be due. Everyone is allowed a lifetime exemption on gifts they give of up to $1 million before gift tax
is due, but it would still need to be reported. But more importantly, if she gives you this home as a gift, then your basis in the home remains the same as her basis, so your basis would be whatever she originally paid for the home plus the cost of any capital improvements she may have made over the years.
This could be a huge difference down the road in how much tax you end up paying if you eventually inherit this home and then sell it at some point in the future.
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