Legal Question in Tax Law in California

Tax repercussions of Unfiled Quit Claim

A property in California was quit claimed to me in 1998 when I loaned the owners money. The quit claim states that it was given in consideration of 2000 dollars, the amount of the loan. The owner was a real estate agent and led me to believe what I was being given was a lien because we agreed that the loan would be due upon sale of the house. Not understanding at the time what a quit claim was I simply placed the notarized document in my safe deposit box and never filed it.

If I were to now file the deed, what would be the tax consequences? (property tax and mortgage continued to be paid by the owners) I do not know what the equity was worth at the time of the loan but it currently exceeds 50,000. What if I were to quit claim the property to one of the two original owners after I have filed it?


Asked on 8/31/04, 11:03 am

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Tax repercussions of Unfiled Quit Claim

He basically gave you the property. You would be responsible for the taxes on the profit. Someone needs to review all of your documents to determine the actual intent.

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Answered on 8/31/04, 4:11 pm


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