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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I took out a HE loan on my property to purchase a condo for

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I took out a HE loan on my property to purchase a condo for my sister. she provided the downpayment. I want to transfer the property to her and me so she can refinance to pay me out. what are the tax implications?

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

There will be no tax implication when you transfer the property to you and your sister. The portion that you give to your sister would be a "gift" - if the interest in the property that you are transferring to your sister is greater than $14,000 you would file a gift tax return, although no tax would actually be due since you have not given away more than $5.2 million during your life

Megan C :

Then, when she buys you out you only have a taxable transaction if she pays you more than what you have invested in the property.

Megan C :

If she simply pays you what you have invested in the property, it's return of basis and there is no capital gain

Megan C :

Did you have any further questions about this transaction?

Megan C :

I see you have joined the chat...are you able to see my response?

Customer:

yes, thank you.

Megan C and other Tax Specialists are ready to help you
Thanks, Laura for your positive rating. Please come back and visit me for any of your tax, finance, or social security needs. It was a pleasure working with you today.
Customer: replied 3 years ago.


I did view your response and sent in a rating.

Thanks, Laura. Have a great day!