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John Jones, Other/Just Looking in Riverside, CA

Property Gifting, Taxes and other Obligations

Asked by John Jones, Riverside, CA Thu Dec 11, 2008

My wife and I are being gifted her fathers home. Today the two of them went to a document preparation company to get the deed changed so that my wife and I are 100% owners of the home. He will continue to live in the home and be responsible for the mortgage.

I've read that every year an individual can gift another individual up to $12k without taxes. There being two of us that means $24k. I've also read that capital gains tax is anything over $250k. What other taxes might I be missing? Additionally, we were told that since it was a father to daughter change that we'd dodge other tax bullets; can anyone clarify on the tax topic?

We live in Riverside California if that helps with your answers. I'd also appreciate if you'd provide an honest opinion on the following two questions:

#1. Should he pay us month to month and then we pay the mortgage that is in his name for record purposes?

#2. When he passes, mortgage in his name but the deed / title in ours; what then?

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Answers

3
We also advise you to consult with your tax, financial, legal, and/or estate planning advisors.

However, we can direct you to some information on the internet so that you may increase your knowledge of this subject.

California Propositions 58 and 193 - the Riverside County Tax Portal has information here:
http://www.riversidetaxinfo.com/riverside_faq_isthereanexclu…

We hope that is helpful.
2 votes Thank Flag Link Thu Dec 11, 2008
You need to contact a real estate attorney and a CPA who can more qualified with all the details handle your file. Brief statements a realtor can potential overlook issues/concerns/ we are not versed in all tax laws and could provide wrong information.
Web Reference: http://www.lynn911.com
1 vote Thank Flag Link Thu Dec 11, 2008
Dear John,
As Realtors we are not qualified to answer tax or legal questions. I would suggest you contact a CPA or Tax specialist and obtain legal counsel. They are the only ones qualified to answer your questions. I can referr you to an exceptional real estate attorney in Austin if you like. I wish you luck!
Sincerely,
Betina
0 votes Thank Flag Link Sat Dec 13, 2008
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