Legal Question in Tax Law in California

Approximately 15 years ago I purchased a home in my name on behalf of my son. (At the time his credit was not good.)

My son has lived in the home continuously since that time and has paid the mortgage. He claims the mortgage interest deduction on his tax return.

Question: If I deed the property to him at this time, would it be considered a gift?

Again, he has lived in the hone continuously since the purchase date and has paid the mortgage.


Asked on 7/20/11, 6:43 pm

1 Answer from Attorneys
Donald Field Donald L. Field, Jr., Attorney at Law

there a several issues regarding the fact situation you have presented.

1. transferring the property to your son's name would be a taxable gift for federal gift tax purposes (but there is an annual exclusion and a lifetime exclusion which would likely apply) and will probably require a federal gift tax return.

2. if your son was not an owner of the home, his mortgage interest deductions were not proper and he is subject to a disallowance if he is audited.

SEE: http://www.irs.gov/publications/p936/ar02.html

you should retain a qualified attorney to provide you with advice and recommendations regarding this.

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Answered on 7/21/11, 9:25 am


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