AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Expert: John Stancil, CPA Date: 7/8/2008 Subject: x-Wife to "Assume" Rental Proprty
Question In 1998, my now x-wife (divorced ’99) and myself started renting our home. Both our names are on the mortgage and deed. I have been claiming this property on my taxes since the divorce, she has not. I would like to get out of the “rental business” altogether. I was thinking if she assumed the mortgage that would get my name off the loan and if I sign over the house with a quit claim deed that would take me off the deed.
Since no money has been exchanged, how do I show this on my taxes – or – do I simply stop filing the rental property on my taxes and the “X” starts?
Answer Ken,
Thanks for your question.
You have a basis in the house and you are basically selling it for your share of the amount owed on the house. Therefore you will have to reflect the gain or loss on the sale on Schedule D.
