Quit-Claim to Family Trust, with Cash-out Deal. Tax Question.
Hi all,
I am looking into quit-claiming my southern California property to my Grandfather's family trust and had a couple questions on any tax situations that might occur. There is $192k left on the mortgage, which would be paid in cash by my grandfather. Then, I would quit-claim the property into his trust after receiving a cash-out check for the difference of what I expect to receive if I sold it traditionally. The cash-out check amount would be $63k.
1) Would there be any tax implication for quit-claiming a paid off property? Also, any tax implication for paying off a mortgage? (First time homeowner here).
2) Any tax implication on the $63k cash-out check? As I understand it I can only receive a gift for $14k per year without the giver being subject to taxes. How might he get around this so I would receive the check as a lump sum?
Thanks,
Kevin