Arizona quitclaim deeds can make property transfers quicker and simpler. Remember, recording fees apply. Factor in these costs before finalizing your transfer.
Filing Fees
Filing fees are assessed by each County Recorder’s Office. Check your recorder’s website or consult a property attorney about what the recording fee will be before sending in any documents.
Taxes
Arizona does not have any transfer or documentary tax for quitclaim deeds.
1. U.S. Gift Tax (Form 709)
The federal gift tax is imposed (Form 709) when property is transferred between individuals without compensation. The tax applies to the value of the property at the time of the transfer, regardless of whether the transfer is meant to be a gift.
Generally, the donor or grantor pays the gift tax, but the grantee may pay if the parties agree.
2. Capital Gains Tax
If the property was quitclaimed for zero value, any appreciation in value may be taxed if or when the property is eventually sold. The difference between the property value at the time of transfer and the value at the time of sale will be used for the capital gains tax.
For instance, a home purchased in the 1970s can be quitclaimed to a child in the 2000s to avoid other taxes, but if the child sells the property in 2024, it will have appreciated substantially.
