Home Buying in Orange>Question Details

Tiffany, Home Buyer in Orange, CA

I am interested in buying my grandfather's house. Is there any benefit concerning taxes I might have?

Asked by Tiffany, Orange, CA Sun Mar 11, 2012

THe home is in Santa Ana.

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Answers

10
One of the reasons many buy houses and properties id for tax reasons... For specifics that appy to your transactions, please get legal and tax advice.
0 votes Thank Flag Link Sat Sep 8, 2012
Talk to that CPA regarding possible Prop 13 benefits in your county.
0 votes Thank Flag Link Wed Aug 1, 2012
Tiffany,

It is interesting to me that @John, the only licensed mortgage professional who responded, is the only one who gave you accurate information. That is, as licensed mortgage professional...who are not licensed tax consultants or certified financial planners...we know we have no business answering questions about tax benefits, etc. To do so would be the equivilent of dispensing medicine without a license. Therefore, our "canned" response will always be: "There may, may not, be tax advantages or consequences; I suggest you consult with a CPA, tax professional or estate planner".

...Just sayin'...........
0 votes Thank Flag Link Tue Jun 5, 2012
Hi Tiffany,

Fannie Mae allows you to purchase a property for an elderly or a disable child and treats it as an owner occupy, that means that you could possibly deduct your property taxes. The best thing to do, it is to talk to an expert a CPA. It's great to have family you can count on...that's an amazing gift to your grandfather. Let me know if you have any further questions.
0 votes Thank Flag Link Mon Mar 12, 2012
Great answers thus far. The short answer to your question is "YES". I would reiterate that you should be speaking with a CPA regarding the specifics of your situation. Some other factors include whether this will be your primary residence, a second home, or income property.
0 votes Thank Flag Link Sun Mar 11, 2012
I would consult with a CPA on that, but there are tax advantages. If you are purchasing the home using financing there are also advantages in the way you can structure the loan to save you grandfather on taxes and save you on down payment.
0 votes Thank Flag Link Sun Mar 11, 2012
How lucky you are. I am sure you will benefit all the way around. Go to the county website concerning taxes and make sure you have it recorded when you do the transfer. Congrats.
0 votes Thank Flag Link Sun Mar 11, 2012
I would also, talk with your tax accountant that will help you with information concerning the taxes... The form and information you can talk with them about... There should be no change in the taxes if you are tranferring between family.. Again, I recommend you check with your accountant....Talk to you soon


Ingrid Ski Realtor
949-874-0432
OCAreaHomes@gmail.com
0 votes Thank Flag Link Sun Mar 11, 2012
Thanks for your question. There are definately tax advantages when you purchase a home. You get tax deductions on your mortgage payments.
I would highly recommned that you consultant an accountant or a CPA for accurate answers that pertains to your situation.

Yes there are tax advantages!

MIke Patel
Web Reference: http://www.mikepatel.com
0 votes Thank Flag Link Sun Mar 11, 2012
HI Tiffany,

Yes you can! Between parent child and grandparent and grandchild.... Porp 193 (BOE-58G, Rev 06-11)
I do have the information about all of the transferring. Contact me and we can talk and I can send you the information and form.. I believe there is no fee for filing the form... Talk to you soon

Ingrid Ski Realtor
949-874-0432
OCAreaHomes@gmail.com
0 votes Thank Flag Link Sun Mar 11, 2012
In order for a transfer for a grand-parent to grand-child transfer to qualify as non-reassessable, the grand-parent's child who is the grand-child's parent, must be deceased. Prop 193 was enacted to expand on Prop 58, which allows transfers from parents to children to not be re-assessed for property tax purposes. Prop 193 is intended to allow property to stay in the family at the same tax basis, even if the immediate children are deceased.

There is no fee for filing the form, but it is best to contact the Assessor for more information before making any decisions based on this exclusion. This transfer may not qualify!
Flag Wed Mar 28, 2012
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