Home Buying in San Francisco>Question Details

Alison Hillm…, Other/Just Looking in San Francisco, CA

What are the tax implications of parents buying or helping to buy real estate for their children in California?

Asked by Alison Hillman, San Francisco, CA Fri Feb 15, 2013

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Deborah Garvin’s answer
Alison, I would add talking to a financial planner as well as a tax consultant....and I certainly recommend a tax PROFESSIONAL, not a tax return chain. Filing a 1040 EZ is far different from structuring a a real estate transaction for long term financing goals.

All my best,

Deborah
NMLS #279125
(619) 795-4547
0 votes Thank Flag Link Mon Feb 18, 2013
BEST ANSWER
I agree that a tax accountant is the best person to speak. A few things you may want to discuss with him or her is if you were to jointly buy the condo, providing a loan to your children for purchase, buying as an investment property. I have seen clients even buy as a second home and have the home in their will to their children. Each one of these scenarios has their own tax implication, of which only a professional tax advisor can explain and provide which method is best for your specific situation.
2 votes Thank Flag Link Fri Feb 15, 2013
That's probably a question best answered by the buyer's tax professional.
1 vote Thank Flag Link Fri Feb 15, 2013
This question should be put to an accountant forum. Real estate agents are not licensed to give tax advice.
If a client asked me this question I'd tell them to look up "gift" taxes and have their parents talk to their accountant. I'd also have my client talk to the mortgage rep to find out about seasoning gift money. Many of the customery questions would be answere there.
There is also options of having the parents be part of the purchase, listed on the contract and on title.
0 votes Thank Flag Link Sat Feb 16, 2013
Jed Lane, Real Estate Pro in San Francisco, CA
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