How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29571
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I live in New Jersey, I am working with my mortgage lender

Customer Question

Hello, I live in New Jersey, I am working with my mortgage lender to do a mortgage modification. My husband and I are divorced it was finalized a few months back. Currently we are both listed on the deed and the mortgage. The bank is requesting that I have my ex husband sign a quit claim deed to remove him as an owner on the property I must do this in order to modify my mortgage.
There will be no money involved in this transaction. Will there be any Tax implications as a result of this transaction for either him or I?
Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

There is NO tax consequences if the property is transferred as divorce settlement.

Neither you nor your ex-spouse will have tax liability because of such transfer.

Expert:  Lev replied 1 year ago.

See for reference

https://www.irs.gov/pub/irs-pdf/p504.pdf

Transfer Between Spouses

Generally, no gain or loss is recognized on a transfer of property from you to (or in trust for the benefit of):

--Your spouse, or

--Your former spouse, but only if the transfer is incident to your divorce.

Incident to divorce. A property transfer is incident to your divorce if the transfer:

--Occurs within 1 year after the date your marriage ends, or

--Is related to the end of your marriage.

A divorce, for this purpose, includes the end of your marriage by annulment or due to violations of state laws.

Related to end of marriage. A property transfer is related to the end of your marriage if both of the following conditions apply.

--The transfer is made under your original or modified divorce or separation instrument.

--The transfer occurs within 6 years after the date your marriage ends.

.

.I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all tax related issues.