Hello, my name isXXXXX & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.
There wouldn't be any current tax consequence, unless you have made substantial lifetime gifts in excess of $5,250,000. If that's not the case, you would be required to file a gift tax return on Form 709, but there would be no tax due.
There is no income tax effect for either you or your daughter.
Is that true if I just add her to the deed?
The form 709's due date is the same as the due date of your income tax return for the year of the gift.
Adding her to the deed transfers an equity interest in the property to her.
What is the purpose of adding her to the deed?
She currently lives in the home and we are trying to get a mortgage but her credit is not so good at the moment. But I want her to be able to get the home eventually
If your intention is for the house to pass to her free of the probate process after you pass away, you'll need to make sure that the new deed is drafted properly naming the ownership interest to be held jointly with right of survivorship.
In case something were to happen to her, you would want to make sure you got the house back without her share of the property being included in her estate.
Is that what the rights of survivor ship does?[
Otherwise it would be "tenants in common" and if something happens to one of you, your interest would be part of your estate.
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