Legal Question in Real Estate Law in California

Me and my brother inherited our mother’s home when she passed mid 2013. At that time the House was appraised at $4.1M minus discounts & loans Net value was $2.95M on Federal Estate Tax Return. The house is valued today at about $6.5M, which if sold we’d be responsible for about $3.5M in Capital Gains Taxes. The home is in Beverly Hills where prices seem to be going up and up and up. I think we invest and update the home and rent it out. Rental rates for this home range from $12k-$16k p/month. That’s a nice Income to be split 50/50 between us. My brother wants to sell now and he’s wants to deal with the Capital Gain Tax because he has almost $500k in Capital Losses and is threatening to file a Partition of Real Estate Lawsuit if I don’t agree to sell. I’ve been told I would have a 95% if losing that lawsuit. Other than trying to find a reasonable 1031 Exchange... what else can I do as to NOT sell the home and or avoid or defer those Capital Gain? ... Is there any way for me to win that lawsuit ?


Asked on 3/08/18, 2:08 am

1 Answer from Attorneys
Gerald Dorfman Dorfman Law Office

Why don't you buy out his half? Unless the property is actually capable of being divided in half, you are very unlikely to prevail in a partition action.

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Answered on 3/08/18, 6:57 am


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