How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barrister Your Own Question
Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33794
Experience:  15 years real estate, Realtor. Landlord 26 years
19958803
Type Your Real Estate Law Question Here...
Barrister is online now
A new question is answered every 9 seconds

My adult son and I have a joint ownership in a condominium

Customer Question

My adult son and I have a joint ownership in a condominium in Orange County, CA, and I am considering transferring full ownership to him without compensation. To avoid taxes would it be better to use a quitclaim or gift deed and why, and would the title transfer affect the property taxes?
Submitted: 5 months ago.
Category: Real Estate Law
Customer: replied 5 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 5 months ago.
my phone no is(###) ###-####
Expert:  Barrister replied 5 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

.

To avoid taxes would it be better to use a quitclaim or gift deed and why, and would the title transfer affect the property taxes?

.

Either one will accomplish the same thing. There is no difference tax-wise because if it is a transfer for less than fair market value, you are making a gift of the value of the interest transferred.

.

And no, if this is a transfer from a parent to a child, it would not trigger a reassessment as this is an exempt transfer.

.

.

thanks

Barrister

Customer: replied 5 months ago.
there is no compensation involved. would taxes be required to be paid by either of us in either case?
Customer: replied 5 months ago.
are you still there?
Expert:  Barrister replied 5 months ago.

Just a second..

Expert:  Barrister replied 5 months ago.

Using either type of transfer would result in there being a gift made from you to your son and potential gift taxes being due from you. The recipient doesn't pay any gift tax.

.

However, you can avoid any gift taxes by filing an IRS Form 709 in the year of the gift with your taxes. This will allow you to use up a portion of your $5.45 million lifetime gift tax exemption and avoid paying any gift taxes.

.

.

thanks

Barrister

Related Real Estate Law Questions