TRY ME!
Selling Property With Irs Lien
Summary
Selling a house with an irs tax lien involves options like payment, discharge, or subordination. To apply for a discharge, complete form 14135, provide a property appraisal, a sale contract, and proof of proceeds. Subordination allows a mortgage to take priority over a tax lien. Removing an executor in alaska requires filing a petition with the probate court. Selling a house below market value to a family member may have gift tax implications. The gift tax is paid by the donor and reported using form 709. A quit claim deed transfers property interest without affecting a will. Probate starts by filing a petition with the court, requiring a death certificate. Without it, probate is challenging. Consult a probate lawyer for guidance.Full Conversation
Hello! I’m wondering what options exist for selling a house that has an IRS tax lien on it from the executor of the estate. I’m in Alaska
Hi ****! Selling a house with an IRS tax lien involves specific steps. Here are some general options:
- Payment or Settlement: Resolve the lien by paying the debt or negotiating a settlement with the IRS.
- Discharge: Apply for a discharge of the lien, allowing the sale of the property.
- Subordination: Request the IRS to subordinate its lien, making it easier to sell.
Would you like more detailed information on any of these options?
- Payment or Settlement: Resolve the lien by paying the debt or negotiating a settlement with the IRS.
- Discharge: Apply for a discharge of the lien, allowing the sale of the property.
- Subordination: Request the IRS to subordinate its lien, making it easier to sell.
Would you like more detailed information on any of these options?
Yes, what is needed to apply for a discharge?
Here's what you typically need to apply for a discharge of an IRS tax lien:
- Form *: Complete the Application for Certificate of Discharge.
- Property Appraisal: Provide a current appraisal of the property.
- Sale Contract: Submit a signed contract for the property's sale.
- Proof of Proceeds: Show how the sale proceeds will satisfy the lien.
Would you like more information or help with any of these steps?
- Form *: Complete the Application for Certificate of Discharge.
- Property Appraisal: Provide a current appraisal of the property.
- Sale Contract: Submit a signed contract for the property's sale.
- Proof of Proceeds: Show how the sale proceeds will satisfy the lien.
Would you like more information or help with any of these steps?
What’s a subordination?
Case Rating: *
Hi ****! Subordination involves requesting the IRS to allow another lien, like a mortgage, to take priority over their tax lien. This can make it easier to refinance or sell the property. Would you like more details on how to apply for subordination?
Hi ****! Subordination involves requesting the IRS to allow another lien, like a mortgage, to take priority over their tax lien. This can make it easier to refinance or sell the property. Would you like more details on how to apply for subordination?
Would a subordination apply if there’s already a refi mortgage on the property?
Case Rating: *
Subordination can still be applicable if there's already a refinance mortgage on the property. It involves the IRS allowing the new mortgage to take priority over their tax lien. This can facilitate refinancing or selling. Would you need more detailed information on how to apply for subordination?
Subordination can still be applicable if there's already a refinance mortgage on the property. It involves the IRS allowing the new mortgage to take priority over their tax lien. This can facilitate refinancing or selling. Would you need more detailed information on how to apply for subordination?
doesn’t the mortgage take priority over the IRS anyways?
Case Rating: *
In general, a mortgage recorded before an IRS tax lien will usually take priority over the IRS lien. However, if the IRS lien was filed before the mortgage, the IRS lien would have priority. Subordination is used to adjust the priority of existing liens. Is there anything else you need help with?
In general, a mortgage recorded before an IRS tax lien will usually take priority over the IRS lien. However, if the IRS lien was filed before the mortgage, the IRS lien would have priority. Subordination is used to adjust the priority of existing liens. Is there anything else you need help with?
If you apply for a discharge, is there a binding agreement wherein you must give the proceeds of the sale to the IRS?
Case Rating: *
When you apply for a discharge of an IRS tax lien, the IRS typically requires that the proceeds from the sale of the property be used to satisfy the lien. This is often a condition for granting the discharge. Would you like more details on the discharge process?
When you apply for a discharge of an IRS tax lien, the IRS typically requires that the proceeds from the sale of the property be used to satisfy the lien. This is often a condition for granting the discharge. Would you like more details on the discharge process?
Yes please
Case Rating: *
To apply for a discharge of an IRS tax lien, it's important to understand the binding agreement with the IRS regarding the sale proceeds. Here’s what you should know:
- The IRS expects the proceeds to be used to satisfy the lien.
- This condition is usually part of the discharge approval process.
Would you like more information on the application process or help with any specific step?
To apply for a discharge of an IRS tax lien, it's important to understand the binding agreement with the IRS regarding the sale proceeds. Here’s what you should know:
- The IRS expects the proceeds to be used to satisfy the lien.
- This condition is usually part of the discharge approval process.
Would you like more information on the application process or help with any specific step?
It’s just complicated because the lien is from the executor, who also took out the refi mortgage, and the estate is to be split between three siblings, however the executor has basically taken more than her share out of the house if the sale will go to pay her IRS lien and her mortgage
Case Rating: *
This situation involves complex estate and lien issues. You may need to explore options for challenging the executor's actions or seeking legal advice to ensure a fair distribution among siblings.
Have you considered discussing this with a probate lawyer or seeking mediation to address the executor's actions?
This situation involves complex estate and lien issues. You may need to explore options for challenging the executor's actions or seeking legal advice to ensure a fair distribution among siblings.
Have you considered discussing this with a probate lawyer or seeking mediation to address the executor's actions?
I wasn’t sure how to reach a lawyer so thanks for that
Case Rating: *
This appears to be a high-value case due to the complexity of estate distribution and IRS tax liens. Would you like to be connected to local lawyers who can better assist you with your case? If so, I can help with that.
Could you tell me more about the executor's actions and how they have affected the estate distribution?
This appears to be a high-value case due to the complexity of estate distribution and IRS tax liens. Would you like to be connected to local lawyers who can better assist you with your case? If so, I can help with that.
Could you tell me more about the executor's actions and how they have affected the estate distribution?
Right I’m wondering what the course of action would be to remove the executor on the basis of incompetence
Case Rating: *
In Michigan, removing an executor due to incompetence involves filing a petition with the probate court. Here are the general steps:
- Gather evidence of incompetence or misconduct.
- File a petition for removal with the probate court.
- Attend a court hearing where evidence is presented.
Would you like to be connected to local lawyers who can better assist you with your case?
In Michigan, removing an executor due to incompetence involves filing a petition with the probate court. Here are the general steps:
- Gather evidence of incompetence or misconduct.
- File a petition for removal with the probate court.
- Attend a court hearing where evidence is presented.
Would you like to be connected to local lawyers who can better assist you with your case?
In Alaska
Case Rating: *
It seems there's a bit of confusion with the location, as you're in Alaska, not Michigan. In Alaska, removing an executor due to incompetence also involves filing a petition with the probate court. You'll need to gather evidence of incompetence and present it at a court hearing. Would you like more information on this process?
It seems there's a bit of confusion with the location, as you're in Alaska, not Michigan. In Alaska, removing an executor due to incompetence also involves filing a petition with the probate court. You'll need to gather evidence of incompetence and present it at a court hearing. Would you like more information on this process?
Yes please
Case Rating: *
This is a high-value case involving complex estate and tax lien issues. Would you like to be connected to local lawyers who can better assist you with your case?
If so, could you share more details about the executor's actions and how they have affected the estate distribution?
This is a high-value case involving complex estate and tax lien issues. Would you like to be connected to local lawyers who can better assist you with your case?
If so, could you share more details about the executor's actions and how they have affected the estate distribution?
If removed as executor, the person would still be a beneficiary in the will though correct?
Case Rating: *
Yes, if someone is removed as an executor, they can still remain a beneficiary under the will. Being an executor and being a beneficiary are separate roles, so removal from one does not affect the other. Would you like more information on the process of removing an executor?
Yes, if someone is removed as an executor, they can still remain a beneficiary under the will. Being an executor and being a beneficiary are separate roles, so removal from one does not affect the other. Would you like more information on the process of removing an executor?
Can the IRS tax lien be discharged from a property if it is proven the person who initiated the lien has no equity in the property?
Case Rating: *
The IRS tax lien can potentially be discharged if it's proven the person with the lien has no equity. However, this typically involves legal proceedings and detailed financial analysis. The IRS may require proof through appraisals and court proceedings. Would you like more information on this process or have further questions?
The IRS tax lien can potentially be discharged if it's proven the person with the lien has no equity. However, this typically involves legal proceedings and detailed financial analysis. The IRS may require proof through appraisals and court proceedings. Would you like more information on this process or have further questions?
Yes
It seems like the case involves complex estate, IRS tax lien, and executor issues, which can be quite intricate. Here's some additional information:
- Discharge Process: The IRS requires proof that the lien initiator has no equity, typically through appraisals and financial analysis.
- Legal Proceedings: Involve detailed court processes and documentation.
Case Rating: *
Would you like to be connected to local lawyers who can better assist you with your case?
- Discharge Process: The IRS requires proof that the lien initiator has no equity, typically through appraisals and financial analysis.
- Legal Proceedings: Involve detailed court processes and documentation.
Case Rating: *
Would you like to be connected to local lawyers who can better assist you with your case?
How do you buy a property with an IRS tax lien? Will a bank even loan on that?
Case Rating: *
Buying a property with an IRS tax lien can be challenging. Generally, banks are hesitant to provide loans for such properties due to the risk involved:
- The lien must be resolved or discharged before the sale.
- Negotiating with the IRS for lien discharge or subordination is crucial.
- Some buyers pay cash or use alternative financing.
Would you like more information on these options?
Buying a property with an IRS tax lien can be challenging. Generally, banks are hesitant to provide loans for such properties due to the risk involved:
- The lien must be resolved or discharged before the sale.
- Negotiating with the IRS for lien discharge or subordination is crucial.
- Some buyers pay cash or use alternative financing.
Would you like more information on these options?
In an estate sale, do the other beneficiaries inheritance of the estate supersede an IRS lien from one of the beneficiaries?
Case Rating: *
In an estate sale, an IRS lien on one of the beneficiaries generally does not affect the inheritance rights of other beneficiaries. The IRS lien is against the specific beneficiary, not the estate itself. Therefore, the distribution to other beneficiaries usually remains unaffected by this lien.
In an estate sale, an IRS lien on one of the beneficiaries generally does not affect the inheritance rights of other beneficiaries. The IRS lien is against the specific beneficiary, not the estate itself. Therefore, the distribution to other beneficiaries usually remains unaffected by this lien.
So one could request an IRS lien discharge on the grounds that the beneficiary with the lien, who also took the refi mortgage out in her name, has no equity in the house?
Case Rating: *
An IRS lien discharge can be requested if it's proven that the beneficiary with the lien has no equity in the property. The process involves submitting evidence, such as appraisals and financial analysis, to the IRS. Legal proceedings may be required.
Do you have any additional questions about the discharge process?
An IRS lien discharge can be requested if it's proven that the beneficiary with the lien has no equity in the property. The process involves submitting evidence, such as appraisals and financial analysis, to the IRS. Legal proceedings may be required.
Do you have any additional questions about the discharge process?
How recent does the appraisal need go
Case Rating: *
For IRS tax lien discharge, the property appraisal should be current, typically within the last few months. This ensures the IRS has accurate, up-to-date information on the property's value. If you have more questions on this, feel free to ask!
For IRS tax lien discharge, the property appraisal should be current, typically within the last few months. This ensures the IRS has accurate, up-to-date information on the property's value. If you have more questions on this, feel free to ask!
to be*
Case Rating: *
It seems your case involves complex estate, IRS tax lien, and executor issues, which can be quite intricate. Would you like to be connected to local lawyers who can better assist you with your case? If yes, could you share more about the executor's actions and how they have affected the estate distribution?
It seems your case involves complex estate, IRS tax lien, and executor issues, which can be quite intricate. Would you like to be connected to local lawyers who can better assist you with your case? If yes, could you share more about the executor's actions and how they have affected the estate distribution?
Does a house have to sell for its appraised value if it’s to a family member?
Case Rating: *
When selling a house to a family member, it doesn't have to sell for its appraised value. However, if the sale is significantly below market value, there may be tax implications, such as gift taxes, to consider. Would you like information on the potential tax implications?
When selling a house to a family member, it doesn't have to sell for its appraised value. However, if the sale is significantly below market value, there may be tax implications, such as gift taxes, to consider. Would you like information on the potential tax implications?
Yes
Case Rating: *
It seems like you're dealing with a complex legal situation involving estate distribution, IRS tax liens, and potential legal actions against the executor. Would you like to be connected to local lawyers who can better assist you with your case? If so, could you share more details about the executor's actions and how they have affected the estate distribution?
It seems like you're dealing with a complex legal situation involving estate distribution, IRS tax liens, and potential legal actions against the executor. Would you like to be connected to local lawyers who can better assist you with your case? If so, could you share more details about the executor's actions and how they have affected the estate distribution?
No thanks, just any info you have on potential tax issues that may arise for selling a house less than market value to a family member
Case Rating: *
When selling a house below market value to a family member, consider potential tax implications:
- Gift Tax: If the sale price is significantly lower than the market value, the difference might be considered a gift, subject to gift tax.
- Capital Gains Tax: Depending on the sale price and original purchase price, capital gains tax may apply.
Would you like more details on any specific tax implications?
When selling a house below market value to a family member, consider potential tax implications:
- Gift Tax: If the sale price is significantly lower than the market value, the difference might be considered a gift, subject to gift tax.
- Capital Gains Tax: Depending on the sale price and original purchase price, capital gains tax may apply.
Would you like more details on any specific tax implications?
Yes both of those please
Case Rating: *
When selling a house below market value:
- Gift Tax: If the difference between the sale price and market value exceeds the annual exclusion limit, it may be subject to gift tax. The current annual exclusion is $*,* per recipient.
- Capital Gains Tax: Tax is calculated on the profit from the sale of the property, which is the difference between the sale price and the original purchase price.
Let me know if you need more information on either!
When selling a house below market value:
- Gift Tax: If the difference between the sale price and market value exceeds the annual exclusion limit, it may be subject to gift tax. The current annual exclusion is $*,* per recipient.
- Capital Gains Tax: Tax is calculated on the profit from the sale of the property, which is the difference between the sale price and the original purchase price.
Let me know if you need more information on either!
After *, what is the gift tax rate?
Case Rating: *
The gift tax rate varies based on the total amount of taxable gifts made over your lifetime. For gifts exceeding the annual exclusion limit of $*,* (as of *), the tax rate can range from *% to *%. It’s best to consult with a tax professional for specific guidance.
The gift tax rate varies based on the total amount of taxable gifts made over your lifetime. For gifts exceeding the annual exclusion limit of $*,* (as of *), the tax rate can range from *% to *%. It’s best to consult with a tax professional for specific guidance.
Who receives the gift tax?
Case Rating: *
The person responsible for paying gift tax is the donor, the person who gives the gift. The recipient typically does not have to pay the gift tax. If you have more questions about gift tax, feel free to ask!
The person responsible for paying gift tax is the donor, the person who gives the gift. The recipient typically does not have to pay the gift tax. If you have more questions about gift tax, feel free to ask!
So if a house valued at $*,* was sold for $*,*, what would the gift tax scenario be?
Case Rating: *
When a house valued at $*,* is sold for $*,*, the difference of $*,* is considered a gift. Here's how the gift tax might apply:
- Annual Exclusion: $*,* per recipient is excluded.
- Taxable Gift: $*,* - $*,* = $*,*.
- Gift Tax Rate: Ranges from *% to *% based on cumulative lifetime gifts.
Consult a tax professional for precise calculations.
When a house valued at $*,* is sold for $*,*, the difference of $*,* is considered a gift. Here's how the gift tax might apply:
- Annual Exclusion: $*,* per recipient is excluded.
- Taxable Gift: $*,* - $*,* = $*,*.
- Gift Tax Rate: Ranges from *% to *% based on cumulative lifetime gifts.
Consult a tax professional for precise calculations.
Who pays the tax? The seller or the buyer?
Case Rating: *
In the case of a gift tax, the tax is typically paid by the seller (donor). The buyer (recipient) does not usually pay any gift tax. If you have more questions about this process, feel free to ask!
In the case of a gift tax, the tax is typically paid by the seller (donor). The buyer (recipient) does not usually pay any gift tax. If you have more questions about this process, feel free to ask!
Where is the gift tax counted?
Case Rating: *
The gift tax is counted as part of the donor's taxable gifts over their lifetime. It is reported to the IRS using Form *, the United States Gift (and Generation-Skipping Transfer) Tax Return. The donor files this form to declare gifts that exceed the annual exclusion limit.
The gift tax is counted as part of the donor's taxable gifts over their lifetime. It is reported to the IRS using Form *, the United States Gift (and Generation-Skipping Transfer) Tax Return. The donor files this form to declare gifts that exceed the annual exclusion limit.
What if it’s an estate that is gifting?
Case Rating: *
When an estate is gifting, the executor must consider estate tax implications rather than gift tax. If the estate's value exceeds the federal estate tax exemption, taxes may apply. The executor should report distributions and file necessary tax returns. Consulting with a tax professional is advisable for precise guidance.
When an estate is gifting, the executor must consider estate tax implications rather than gift tax. If the estate's value exceeds the federal estate tax exemption, taxes may apply. The executor should report distributions and file necessary tax returns. Consulting with a tax professional is advisable for precise guidance.
When applying for an IRS discharge of a lien of a specific property on the grounds that the person with the lien has no equity in the property, what is required?
Case Rating: *
To apply for an IRS discharge of a lien based on lack of equity, you typically need:
- Form *: Application for Certificate of Discharge.
- Property Appraisal: Current appraisal indicating no equity.
- Supporting Documents: Financial analysis and relevant evidence.
- Sale Contract: If applicable, showing intended sale.
If you have more questions or need further details, feel free to ask!
To apply for an IRS discharge of a lien based on lack of equity, you typically need:
- Form *: Application for Certificate of Discharge.
- Property Appraisal: Current appraisal indicating no equity.
- Supporting Documents: Financial analysis and relevant evidence.
- Sale Contract: If applicable, showing intended sale.
If you have more questions or need further details, feel free to ask!
What is a quit claim deed in Alaska?
Case Rating: *
A quit claim deed in Alaska is a legal document used to transfer a person's interest in a property to another party without warranties. It doesn't guarantee that the title is clear. It's often used among family members or to clear up title issues.
If you have more questions, feel free to ask!
A quit claim deed in Alaska is a legal document used to transfer a person's interest in a property to another party without warranties. It doesn't guarantee that the title is clear. It's often used among family members or to clear up title issues.
If you have more questions, feel free to ask!
If a quit claim deed is used by the benefactor to a beneficiary and the benefactor, does that mean the benefactor’s will still applies?
Case Rating: *
Using a quit claim deed to transfer property does not affect the validity of a benefactor's will. The will still applies to the distribution of other assets upon the benefactor's death. The quit claim deed only transfers the property interest specified in the deed. Do you have any further questions about this process?
Using a quit claim deed to transfer property does not affect the validity of a benefactor's will. The will still applies to the distribution of other assets upon the benefactor's death. The quit claim deed only transfers the property interest specified in the deed. Do you have any further questions about this process?
Why do that if there’s already a will?
Case Rating: *
Using a quit claim deed alongside a will can provide immediate property transfer, avoiding probate for that asset. It ensures the beneficiary receives the property without waiting for the will's execution, offering a quicker and simpler transfer process. Do you have any more questions about estate planning or property transfer?
Using a quit claim deed alongside a will can provide immediate property transfer, avoiding probate for that asset. It ensures the beneficiary receives the property without waiting for the will's execution, offering a quicker and simpler transfer process. Do you have any more questions about estate planning or property transfer?
What is probate?
Case Rating: *
Probate is a legal process where a deceased person's will is validated, and their estate is administered. This involves paying debts and distributing assets according to the will or state law if there's no will. Probate ensures legal transfer of assets to heirs. Let me know if you have any more questions!
Probate is a legal process where a deceased person's will is validated, and their estate is administered. This involves paying debts and distributing assets according to the will or state law if there's no will. Probate ensures legal transfer of assets to heirs. Let me know if you have any more questions!
How does probate start ?
Case Rating: *
Probate starts by filing a petition with the probate court to open the estate. Here's a brief overview:
- Submit the deceased person's will and death certificate.
- Petition the court to appoint an executor or administrator.
- Notify heirs and creditors.
- The court validates the will and oversees asset distribution.
Let me know if there's anything else you'd like to know!
Probate starts by filing a petition with the probate court to open the estate. Here's a brief overview:
- Submit the deceased person's will and death certificate.
- Petition the court to appoint an executor or administrator.
- Notify heirs and creditors.
- The court validates the will and oversees asset distribution.
Let me know if there's anything else you'd like to know!
How do you know if the petition to open the estate has been filed?
Case Rating: *
To find out if a petition to open an estate has been filed, check with the probate court where the deceased lived. You can visit the court's website or contact the court clerk for records. If you have any more questions, feel free to ask!
To find out if a petition to open an estate has been filed, check with the probate court where the deceased lived. You can visit the court's website or contact the court clerk for records. If you have any more questions, feel free to ask!
If there is no death certificate, can probate begin?
Case Rating: *
Probate usually requires a death certificate to begin, as it verifies the individual's passing and is necessary for the legal process. Without this document, initiating probate can be challenging. You may need alternative proof of death or consult with a probate lawyer for guidance.
Probate usually requires a death certificate to begin, as it verifies the individual's passing and is necessary for the legal process. Without this document, initiating probate can be challenging. You may need alternative proof of death or consult with a probate lawyer for guidance.
Start a new chat