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Ray, Lawyer
Category: CA Real Estate
Satisfied Customers: 42297
Experience:  30 years in civil, probate, real estate, elder law
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Real Estate My father owns a property in California. Only

Customer Question

Real Estate
My father owns a property in California. Only his name is ***** ***** title and deed. It was done with the intension of just having my dad do the docs signing to make the process easier. I am not sure if its the quitclaim, something else or both.
In the event if the property is sold, will there be any issues with the married couple claiming tax gains?
A new primary residence was purchased on Oct 2013. But the moving date to that was July 2014. It is my understanding that the tax gains on the old primary residence is good till June 2017. I am not sure if the assessor was updated. Is it enough to prove on tax returns that the tenant moved in into the old primary residence on July 2014?
Selling the old house which has unpermitted structure. I have been advised to share it in the disclosures forms and have the mls read "Seller is selling property As Is. Buyer to do their due diligence, provide their own repair and do their own inspections." The agent said their is not much space available on the mls confidential remarks and As Is will be good enough. Any suggestions?
Submitted: 1 year ago.
Category: CA Real Estate
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. Ray here to help you today.

Expert:  Ray replied 1 year ago.

Give me a minute here to prepare your answer.

Expert:  Ray replied 1 year ago.

You r father can claim the exception to capital gains here.If your parents sell their home, you may exclude up to $250,000 of your capital gain from tax. For married couples filing jointly, the exclusion is $500,000. Also, unmarried people who jointly own a home and separately meet the tests described below can each exclude up to $250,000.

The law applies to sales after May 6, 1997. To claim the whole exclusion, you must have owned and lived in your home as your principal residence an aggregate of at least two of the five years before the sale (this is called the ownership and use test). You can claim the exclusion once every two years.The title company may want the wife here to sign a quitclaim or other document to confirm her consent to the sale even though she is not on the deed.I would contact title company here ahead of time to see if she needs to sign as well.

Expert:  Ray replied 1 year ago.

It looks like they would still be able to claim this exception. I would ask the title company about the unpermitted structure to see if the description is sufficient.It may well be but I would be upfront about that with them..They can ensure there is enough description in the closing documents.

I appreciate the chance to help you today.Thanks again and good luck here with closing.