Legal Question in Tax Law in California

Gift and Capital Appreciation

Dad bought house in 1984.

Put me on as joint tenant in 1993, it is my

primary residence.

Dad passed away intestate in 2004.

Changed title to me later in the year.

If I sell, are there gift tax considerations?

Are capital gains figured from his original purchase

price?

Thanks.


Asked on 9/21/04, 7:01 pm

2 Answers from Attorneys

Joel Selik www.SelikLaw.com

Re: Gift and Capital Appreciation

You will have avoided taxes on 1/2 of the property but not on all as if it had been in his name alone.

JOEL SELIK

Attorney at Law

800-894-2889

760-479-1515

702-243-1930

Licensed to Practice Law in California and Nevada Only

CONCENTRATING IN ELDER ABUSE, LITIGATION AND COLLECTIONS

Personal Injury, Contracts, Tax Matters, Business,

Malpractice, Appeals, Elder Neglect/Abuse/Nursing Home Malpractice

Real Estate, and Other Legal Matters

This is just general information. No representations are made and no attorney client relationship is established by this communication. In most matters there are strict time limitations within which actions may be taken or your rights will be compromised. We are not taking any action on your matter and will not be considered your attorney or tax representative until both you and we have signed a fee agreement.

We, therefore will take no action on your behalf unless a written retainer agreement is signed. There are strict deadlines, called statutes of limitation, within which claims or lawsuits must be filed. Therefore, if you do not retain SELIKLAW, you should immediately seek the services of another attorney or other advisor.

Read more
Answered on 9/22/04, 10:15 am
Scott Linden Scott H. Linden, Esq.

Re: Gift and Capital Appreciation

It depends...

If you file a Parent to Chilt transfer then you can avoid any transfer tax or steps up in basis. At the sale there is capital gains considerations, as there always is, but if you reinvest in a different primary residence many of these taxes can also be avoided.

Our firm would be happy to assist you with the preparation and filing of the documentation, we have over 25 years experience with estate planning.

Please feel free to contact me at 626-578-0708 or through our firm's site at www.No-Probate.com. The site will also provide you with some forms and additional information about the Probate and small estate processes.

Scott

Read more
Answered on 9/22/04, 2:31 pm


Related Questions & Answers

More Tax and Taxation Law questions and answers in California