Hoping someone can help with this scenario.
I’m looking to add my fiance to the title on a house in which I am living (she has helped finance some renovations), and do a refi (in her name only) to recoup some of the capital we have put into renovations, and to free up my credit so I can make another purchase of an investment property.
I have investigated the financing (she qualifies, and the lender will not require me to sign the note), title and legal aspects with the appropriate folks, but I’m wondering about any tax implications for either of us.
I am trying to anticipate any major tax consequences:
I think I would lose the interest deduction (unless, I assume, we filed jointly for 2013) after being married in may, so this does not seem significant.
She would be picking up a half ownership in a property valued at about 120k. Does that expose her to tax liability (for example, for capital gain of %60k)?
Thanks!