My parents in law granted a deed to us as a gift. There is still a mortgage balance on the property.?

Are we going to be taxed on the property that was gifted to us. Can we apply for refinancing right away on the property.My parents in law granted a deed to us as a gift. There is still a mortgage balance on the property.?
Gifts are never taxable to the person receiving the gift. If you were gifted 100% of the property you can do what you want with it even refinanceMy parents in law granted a deed to us as a gift. There is still a mortgage balance on the property.?
It depends upon the worth of the property. If the property minus the mortgage balance is more than the annual taxable gift amount then yes you will be taxed on the property. But you will not have to pay taxes in excess of you federal income tax percentage. Now because there are two of you it is easier for the gift amount to be higher. For example if both parents were property owners then they can each give each of you up to $12,000 each in non taxable gift. Meaning between the two of them they can give the two of you a total of $48,000 in gift that would be non taxable (ie: Mom gives you $12,000. Dad gives you $12,000 Mom give spouse $12,000 Dad gives spouse $12,000) Now after the property is valued you would deduct the 48,000 and whatever the balance is on the mortgage. That would be your taxable amount. BUT if you take out a mortgage of your own for the balance on the property you will also be able to deduct any FEES charged for refinancing.


I STRONGLY suggest you consult a CPA to ensure that the gift amounts are properly documented along with the balance on the property so that your inlaws do not end up being taxed on the capital gains of the property and to ensure you get all your fees and gift properly documented in order to ensure everyone is protected and received the full deductions allowed by law. The CPA may even be able to recommend a good mortgage company for whatever your circumstances. It shouldn't be a problem to refinance right away, you might even be able to include what you will owe in income taxes so that it isn't a burden. A CPA can handle the whole transaction along with the title company and everyone will be happy then you can relax and enjoy this wonderful gift from your inlaws!
You probably will pay tax, and yes if the deed is in your name and your credit history is good, then no worries you will be able to take a loan/mortgage out on the property.