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What are the tax implications of assuming a mortgage (FHA) in California between family members?
Anonymous3 views3 answers
Last year (2015), I assumed my son's mortgage (FHA loan) and transferred the title into my name ( In California). Currently I live in the house and it's my primary residence. The house was purchased for 207 K in 2012 and now (Feb 2016) is worth 380 K. I would like to know if there is any tax implications assuming a FHA mortgage loan in California that could affect me or my son.
I'm not sure about a FHA mortgage specifically but there may be gift taxes involved. You will want to speak to a CPA in your area to advice you on the tax implications.
My colleague has given you good advice. Your son may have to file a gift tax return for the equity of the house transferred to you. You can deduct the mortgage and property taxes paid. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a tax attorney in person. Good luck. Zaher Fallahi, Tax Attorney, CPA (California).
