Real Estate/Taxes (documents, mortgage, mortgage, housing)

[mikeysmom01]

Hello, my boyfriend and I bought a house and in november of 2010 my boyfriend gave me $35K and bought me out of the house. I signed the house over to him but my name is still on the loan at the bank. How does that affect the both of us tax wise?

[rjrcm]

If your boyfriend is the only one on the deed, then he is responsible for paying taxes. However, since you are on the loan, you are still responsible for it, and any missed loan payments will affect your credit. It would have been better for you if your boyfriend had refinanced into a new loan in only his name.

[mikeysmom01]

my question is... sorry should have been more clear. How is it going to affect our tax returns for 2010?

[rjrcm]

Likely you would prorate any tax related housing expenses on your return for the months in 2010 that you were part owner. You should consult with a tax professional.

[NY Annie]

You may have some serious issues affecting your financial situation if you don't get this mess cleared up. YOU are still responsible for the mortgage and for taxes and other expenses associated with the house unless you "signed the house over to him" via a deed, whether quitclaim is irrelevant. The issue is whether that deed was recorded, which I suspect was not done since you remain on the mortgage documents. If not, you are still an owner of record and, as such, may be liable for issues which arise concerning the property - just an off-the-top of my head thought: tort (slip and fall not covered by insurance); property taxes unpaid, mortgage not paid.

You really need legal and accounting help - ASAP.

[piyf]

This doesn't pass the smell test.


Why would your boyfriend give you 35k (if you're still together) for the other half of the home?
If you got the home jointly then you can not simply sign it to ones name like a car title.

[rjrcm]

Originally Posted by danieloneil01

...If you got the home jointly then you can not simply sign it to ones name like a car title.

I assumed when she said she "signed the house over to him", that she signed a quit claim deed, which should have been recorded. If not, I agree, it's a big problem. This can be done regardless of the mortgage, but again, not a good financial decision if the mortgage is not also changed.

[TimtheGuy]

The bigger problem is that the OP is still on the hook for the loan.

Tax wise you can split up the interest deduction and the RE tax deduction any way you want as long as you and the guy's total don't surpass 100% of the total.