Originally Posted by cdsk1121
My wife and I purchased a home from my parents 2 years ago. We financed the transaction privately through them, and have a promissory note to pay the balance of the purchase price of the home. We now are looking to re-finance the home with a broker but have a lien on the house for the value of the promissory note. To complete the re-financing process, we would need to remove the lien from the home. We have been told by our broker we could simply re-convey the lien, receive the re-financing funds, and then place the lien back on the home. Would doing so:
A) Constitute as a gift from my parents?, and;
B) Would property taxes be potentially re-assessed following the filing?
Any advice/help would be greatly appreciated!
A) Constitute as a gift from my parents?, and;====>>>>Yes I think so UNLESS you pay it off ; You can give up to $14K($28K for joint filers, gift splitting allows a couple to increase their total gift tax exemption amount by combining individual allowances.) for 2015 worth of assets each year to as many people as you like gift-tax free; aslongas the amt exceeds $28K; If ONE of them gives a check for between $14,001 and $28K they need to file ONE form of 709with both signatures. If ONE of them gives a check for $28001 or more, then they BOTH would need to file forms of 709 because BOTH of their would be nibbling into the $5.45Million lifetime gift exclusion.
You, as a done, are not subject to nay tax and do not need to file form 709.
B) Would property taxes be potentially re-assessed following the filing?====>>I guess you need to contact your County Tax Assessor’s Office or Tax Collector’s Office for more accurate info in detail; the County Assessor will reassess you property at the time of sale for all of your future taxes that will need to be a reassessment does not necessarily mean that your assessment or your taxes will increase. Furthermore if your assessment does increase, it does not necessarily mean your taxes will increase.