Quitclaim deeds themselves are not directly reported to the IRS. However, the transfer of property using a quitclaim deed can have tax implications that may need to be reported, depending on the specifics of the transaction. Here are the key points to consider:Gift Tax Implications:Gift Tax Threshold: If the property is transferred as a gift (i.e., no money or less than fair market value is exchanged), it may be subject to federal gift tax rules. For 2024, the annual gift tax exclusion is $17,000 per recipient.Gift Tax Return: If the value of the gift exceeds the annual exclusion amount, the grantor must file a Form 709 (United States Gift (and Generation-Skipping Transfer) Tax Return) with the IRS to report the gift. However, no gift tax is due until the lifetime exclusion amount, which is $12.92 million for 2024, is exceeded.Capital Gains Tax Implications:Basis in Property: The grantee’s basis in the property is generally the same as the grantor’s basis, meaning the original purchase price plus any improvements. When the grantee sells the property, they may owe capital gains tax on the difference between the sale price and the adjusted basis.Step-Up in Basis: If the property is transferred upon death (e.g., via a Lady Bird deed), the grantee may receive a step-up in basis, potentially reducing capital gains taxes when the property is sold.Income Tax Implications:Reporting Sales: If the property is sold as part of the quitclaim deed transaction, the sale must be reported on the grantor’s and potentially the grantee’s income tax returns. The grantor must report any capital gains from the sale.Mortgage and Debt Considerations:Assumption of Debt: If the grantee assumes the grantor’s mortgage or other debt as part of the transfer, this could also have tax implications. The forgiven debt might be considered taxable income.While quitclaim deeds are not directly reported to the IRS, the property transfer can have significant tax implications that may need to be reported, particularly regarding gift taxes, capital gains taxes, and income taxes. Consulting a real estate attorney or tax professional is essential for navigating these complexities.