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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28281
Experience:  Taxes, Immigration, Labor Relations
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I wasn't able to get a mortgage back in 2007 so I bought a

Customer Question

Hi Pearl
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I wasn't able to get a mortgage back in 2007 so I bought a house but my brother is the named owner on it.
JA: Is there anything else the Accountant should be aware of?
Customer: Now my brother wants to transfer it into my name and I am already a homeowner
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Customer: what is the implication of the tax on this and would I need to change it to a buy to let
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.

If your brother is the OWNER of the house - the property may be transferred to you either as a gift OR as a sale.

Or a combination of both.

If the property is sold - your brother will likely be liable for income tax on the gain.

If the property is gifted - the gift is not taxable income for the recipient, but the donor will need to file a gift tax return when the gift is above the threshold.

Let me know if you need details for either tax treatment.

Customer: replied 8 months ago.
Thank you Lev
There is still a mortgage on the property so does this mean he can still sign it across or gift it to me and also the house of course has increased in value from 10 years ago.
What is the implication on this - would I have to buy it at current cost price or the price it was back when my brother put his name against it and would I have to buy It as a buy to let and what would be the tax payable on this. I am based in the UK,
Thank you
Expert:  Lev replied 8 months ago.

The mortgage holder registered a lien on the property - means - the title may not be transferred without the mortgage holder approval.

That is a common practice to have a lien to secure the mortgage.

So - you would need to communicate with the mortgage holder and verify their requirements.