Legal Question in Tax Law in California
Property from Parent to Child
I live in San Diego, in a condo worth approximately $275,000. It is owned by my mother, who wants to give me the property.
I am trying to figure out how to do this with no tax consequences for either one of us.
Can we just do a quitclaim deed and a parent-child exemption? Or would it be better to do joint tenancy with right of survivorship? What is the best way to avoid property, income, and gift taxes?
My mother would prefer to give me the property outright, but we will do the joint ownership if that's what works best for tax purposes.
2 Answers from Attorneys
Re: Property from Parent to Child
Has the property increased in value since purchase, transfer to you might cause income taxes on sale. Otherwise can do quit claim or JT, each has pluses and minuses.
Re: Property from Parent to Child
You did not say if you are married. This is much easier if you are married.
This transaction can be structured so income taxes and gift taxes are not required. Also, you need to be careful to protect your Mom's property tax base in the property. About half the counties in California allow a carryover of your mother's Prop 13 property tax base to you as a child.
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