Scenario: My father has been through financial problems throughout his life. 10 years ago, he and my mom have had negative credit scores due to past uses with the IRS and he even had his wages garnished. However he could scrape by and later on I helped him out by buying a home with a mortgage thereby having my name both on mortgage and title. I knew I would end up selling the property if they didn’t make payments on the mortgage as my security and I could always deduct the mortgage interest on my returns. He promised to pay off the mortgage within 2 years and in return I would give away the property to him right after that. But it’s over 6 years and the loan isn’t paid off. I have had to take out cash from my savings to keep the payments on time. The property has gone up in value over the years but my relationship with my dad has worsened. He feels I’m into stealing his money which isn’t true. My dad wants me to sign over the property to him. And he’s also looking for lenders to refinance the loan as the quitclaim would leave the mortgage payoff responsibility entirely on my shoulders. I’d like to make sure that my name is removed from the mortgage debt if at all I transfer the property and would like to know about the tax implications. Is such a transfer possible using a quitclaim? I don’t want to sell and out him in a precarious situation because he can’t make payments as he’s on social security only and in order to save a bit more, he’s looking for a refinance.
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