Rename the title deed in US does seem to be as simple as signing and changing the name, but in fact there is a lot of knowledge that needs to be understood. It is understood that the rename of the title deed can be simply classified into two types, one is a paid transfer, which is a normal house sale, and the other is a free transfer, such as a gift.

How to rename the title deed in US?

1. Paid transfer

  The so-called paid transfer is easy to understand as the process of ordinary house purchase and sale. Both parties to the transaction hire a broker and sign when the transfer is processed. Basically, the lawyer will check it, so there will not be too many disputes and problems. However, there is a situation in the paid transfer, that is, the house is sold at a very cheap transaction price. For example, an uncle sells a property worth 600,000 RMB to a nephew at a low price of 200,000 RMB. There seems to be no problem, but there is a lot of content involved in this one.

  The first is title insurance. The transaction price of this property is 200,000 RMB. The nephew who purchases this property needs to purchase title insurance again. However, the claim amount of title insurance is determined according to the price of the house, which means that once the property rights issue of this house, the title company can only calculate the claim amount based on 200,000. Second, there are two main taxes that may be involved in tax payment: transaction tax and capital gains tax.

* Transaction tax

When buying a house, the seller has to pay transaction tax. The amount of transaction tax is also calculated based on the transaction price of the house. Taking the example just now, if it is a house that pays a transaction tax of 600,000 at the normal market price, the property tax rate of more than 500,000 It is 1.825%, and a transaction tax of 600,000×1.825%=10950 USD is required. If it is 200,000 RMB, the tax rate is only 1.4% lower. Then 200,000×1.4%=2800 USD. So from the perspective of transaction tax, a lot can be saved.

* Capital gains tax

  If the property is used for self-occupation, there is no problem, but if it is an investment property, another tax will be involved when the property is sold in the future, that is, capital gains. Just like the example just now, after a few years, my nephew wants to sell the house. At this time, the market price of this house has risen to 700,000, 700,000 to 200,000 (the original purchase price) = 500,000 (the part that needs to pay income tax) , The tax rate for capital gains is very high, almost 15%. Then 500,000 × 15% = 75,000 US dollars (asset income tax).

2. Free transfer

  The so-called free transfer is a gift. If you want to handle a free transfer, the procedure is much easier than a paid transfer. To do a free transfer, you only need to go to the lawyer's office twice: the first time you go, you bring your valid ID and social security number, and let the lawyer prepare a legal document for the house deed gift. On the second visit, the donor signs the housing deed gift document, and then both the donors sign the transaction tax bill, and it can be completed. The expenses incurred are also far lower than the transfer fee of the house transaction, which can be completed in less than US$1,000, mainly including the property registration fee of US$160 and attorney fees. Since there is no transaction for the donated real estate, there is no way to purchase title insurance. Once there is a problem with the title, the original owner can only be compensated. In terms of taxation, there is no transaction tax, and capital gains tax is also calculated from the price on the date of purchase by the original homeowner.

  Free transfer sounds beautiful, but it may still cause legal disputes. Although the procedures for this kind of free transfer similar to gifts are simple, there are still many points that need to be paid attention to. The following points are summarized:

* Elderly welfare

  Many elderly people now want to apply for some government benefits, such as medicaid. However, because of the income requirements, many elderly people worry that if they own real estate, it will affect the application for medicaid, so they transfer the real estate to their children. But they don't know that even if the property is transferred, there are some cases where they still cannot apply for the government's medicaid within 5 years. It’s not that you can apply for transfer right away. This is something they must pay attention to.

  Moreover, such a deed transfer will leave many elderly people without protection. If an elderly person must give the property to himself, a clause can be included in the deed. Even though the old man has transferred the property to his children, the old man has the right to live in the property for life. Many people have a misunderstanding that they cannot apply for medicaid if they have real estate. In fact, you can apply for real estate as well. If this property is the only real estate where the elderly live, do they have any income and savings, then they can also apply for medicaid. In this way, as long as one day the elderly intends to sell the house or dies, the money from the sale of the house will first be paid for his medical expenses, and the remaining money can be left to the children.

* Medical trust

  If there are elderly people in this need, it is best to communicate with a lawyer to see which method is the best. In fact, elderly people don’t have to worry about how real estate will affect their application for government benefits, and even if they transfer the real estate to their children to enjoy the benefits, they still have to find a way to protect themselves.

* Temporary transfer of arrears

  Some people temporarily transfer their real estate to others because of arrears. However, there is no way to purchase title insurance for a gratuitous transfer, and the indemnifier of the insurance is the original owner. Therefore, once the original homeowner has arrears, the arrears will not only follow the person, but also follow the house. As long as the donated party sells the house, he still has to repay the arrears, otherwise the property right of the property is also in question.

* Transfer your personal real estate to your own company

  Nowadays, many people choose to transfer their personal real estate to their own company. In fact, they transfer to themselves, but it is important to note that the owner of the property must be the same as the owner of the company. If the property is owned by a couple, the company must also be under the name of the couple, and the share must be the same. If it is changed, it will involve the issue of transfer tax, because this kind of transfer does not require transfer tax.