My Husband and I signed with my sister and her husband for a mortgage for them to buy their house. We are al on the deed and the mortgage. My sister's husband has made it clear that he does not want to pay any more taxes to the government. (He sold his business last year). They have now purchased a lovely home in Florida and want to sell this home we all are on. My husband and I have not made any mortgage payments on the mortgage and they handled everything responsibly. They want us to sign a quit claim prior to the sale of this house. There is still a $70,000 mortgage on the home. Our questions are: 1) Is their any way that we could be held liable for any taxes due on the sale of the property if my brother-in-law does not report or pay what is due to the IRS? 2) If there are any liens that are against the property that existed prior to the signing of the quit claim by us, against my brother-in-law and his sold business, on this home, could we be held liable? Basically what I am asking is that if we sign the quit claim are we then free of all ( Tax-Mortgage- Liens) financial liability?

No, you are not free of all financial liability if you sign a quit claim deed. All you are doing is freeing yourself of ownership of the property. In order to be free of responsibility for the mortgage the mortgage must be either paid in full or refinanced in only your sister and husband's names.

As for taxes, you are responsible for tax on any gains. If you sell your share of the property to your sister and her husband for the same price you paid then you have no gain and there is no tax. If you remain an owner until the property is sold and it sells for more than you paid, then you will have to pay tax on the profit you make.