All Forum Posts by: Ryan Flake

Thanks for the responses. I failed to mention that I and my wife are currently on the title with my father and have been since the house was purchased. Since we are on already, if he were removed, the ownership wouldn’t be transferred so would he technically be gifting it to us? Even though the funds to purchase the home came out of his account, since the three of us are on the title, taking him off shouldn’t create a tax burden for us, right? 

Thanks

Hello,

A few years ago, I needed my father to co-sign on a mortgage with me to buy my first home. We decided he would just buy the house instead and I would pay in an unofficial mortgage each month. I moved out of the home and now have renters in it. I would like to get a bank mortgage on it and use the money as down payments for a few more rental houses. I know this is leveraging like crazy but I want to do it. The bank would want my father to sign the mortgage as well for the deal but I don't want to involve him any more than I have to. If I were to do a quit claim deed and remove him off the title, what would the implications be? Would it count as a gift which I would have to pay tax on or since we bought the property "together" technically, it would not be a change of ownership and I would not be liable for taxes? Any other issues you could see with this scenario?

Thanks