loan,banking and credit
*Loan,banking and credit>>>child tax

Is there a tax liability if I add mu children to the deed for my house by quitclaim back to all three of us?


myself plus a son and daughter. purpose is for a second mortgage that will fund their payoff of high retail credit cards. They live in the house and currently pay me rent (for 12 years) and the loan is beign collateralized by the house (which is paid for)The credit card debt amount is 60k @ average of 31% and the loan will be @ 7% for 7 years.

It's not a second mortgage if the house is already paid for; it's a home equity loan. What advantage do you expect to gain by adding them to the deed?

Remember that the loan is based upon the equity in your home, not on your ability to pay based upon your income. Thus, if you can't make the payments, you could lose your home.

As for tax liability - having only one name on the loan simplifies taxes.

I would think the first concern should be having your adult children get their spending under control.
It depends on if the loan is in all three of your names. You can have a promissory note from just yourself and issue the deed to whomever you wish. If the loan is just in your name, then the answer is no. If it is in all three of your names, then your itemized deductions for any points and interest paid are going to be split in three. My question is why does it have to be a quitclaim deed? Is there any reason why you can't issue a general warranty deed?
Me (NC licensed Real Estate agent)
YES because a deed means the state and county will get their TAXES. Also if the kids don't pay you loose your house. How about making them stand on their own two feet MOM. they should have declared bankrupsy when they had the chance. They still should but our good government is going to make them payoff the debt they will just have to do it at a lower interest rate. Have them get a hold of the credit card companies and try and work out a payment plan.
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