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There would be potential capital gain taxes and possible gift tax implications as well. Let me explain: First, here is the rule for gain on the sale of a house: "For sale or exchanges after May 6, 1997, federal law allows an exclusion of gain on the sale of a personal residence in the amount of $250,000 ($500,000 if married filing jointly). The taxpayer must have owned and occupied the residence as a principal residence for at least 2 of the 5 years before the sale. California conforms to this provision. However, California taxpayers who served in the Peace Corps during the 5 year period ending on the date of the sale may reduce the 2 year period by the period of service, not to exceed 18 months." see: See the following passage California's FTB Publication 1001 at: https://www.ftb.ca.gov/forms/2013/13_1001.pdf
So if your gain (that is the net proceeds of the sale minus the original cost plus capital improvements) is more then the exempt amount, the amount over the exemption is subject to capital gain tax.
If you help a daughter purchase a new house and do not hold an interest in the property ( that is you are not on title), the IRS may treat this a gift and therefore would count against a person's lifetime exemption of giving away 5.45 million before the gift is taxed. A person may give away $5.45 million over the span of their lifetime and there is no gift tax owed. Beyond this amount the person giving the gift must pay gift taxes. Until the amount of gifts reach $5.45 then there is no tax gift liability. So for example if you buy a house worth $450,000 and do not become the owner but buy it for your daughter, the IRS could argue that you made a gift in the amount of $450,000 and therefore only have 5 million to gift during your lifetime before a tax would kick in. (Any amounts gifted to a single person in the amount over $14,000 is required to be reported on a gift tax return even if no taxes are due).
There is currently no California gift tax.
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Please be aware that the information provided here is not legal advice. Rather it is simply general information. All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you.