Real Estate Law

Have Real Estate Law Questions? Ask a Real Estate Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Real Estate Law

If I sell my home and buy another with my daughter and do

Customer Question
not put my name on...
If I sell my home and buy another with my daughter and do not put my name on the title, what are the tax consequences?
Submitted: 1 year ago.Category: Real Estate Law
Show More
Show Less
Ask Your Own Real Estate Law Question
Answered in 24 minutes by:
2/29/2016
Real Estate Lawyer: J. Warren, Lawyer replied 1 year ago
J. Warren
J. Warren, Lawyer
Category: Real Estate Law
Satisfied Customers: 2,249
Experience: Experience in residential real estate and commercial leases.
Verified

Hello and welcome to JustAnswer. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

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.

All my best and encouragement. Thank you for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (3 stars or more). I thank you in advance for taking the time to provide me a positive rating!

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.

Ask Your Own Real Estate Law Question
Real Estate Lawyer: J. Warren, Lawyer replied 1 year ago

Can I answer any additional follow up questions for you or clarify anything I have written above? If not, can you please press a positive rating above this message box in the ratings section so I will be paid for my time assisting you on this matter? Pressing a positive rating will not cost any additional money - it is simply the trigger used by Just Answer to pay me for my time (pressing the middle star or the fourth or fifth star on the right are all positive rating buttons).

Ask Your Own Real Estate Law Question
Ask J. Warren Your Own Question
J. Warren
J. Warren
J. Warren, Lawyer
Category: Real Estate Law
Satisfied Customers: 2,249
2,249 Satisfied Customers
Experience: Experience in residential real estate and commercial leases.

J. Warren is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Tina

Tina

Lawyer

5,436 satisfied customers

17 years of legal experience including real estate law.

Barrister

Barrister

Lawyer

10,826 satisfied customers

16 years real estate, Realtor. Landlord 26 years

Infolawyer

Infolawyer

Lawyer

7,657 satisfied customers

Experienced lawyer

Ray

Ray

Lawyer

7,367 satisfied customers

Texas Attorney for 30 years dealing in real estate

LawTalk

LawTalk

Attorney

6,207 satisfied customers

I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.

Dimitry Esquire

Dimitry Esquire

Attorney

5,526 satisfied customers

JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin

Ely

Ely

Counselor at Law

4,899 satisfied customers

Qualified attorney in private practice including business, family, criminal, and real estate issues.

< Previous | Next >

Related Real Estate Law Questions
Six years ago I began renting out my townhouse in Multnomah
Hello, Six years ago I began renting out my townhouse in Multnomah County after living in the unit for ten years. I used a well respected property management firm and have never had a problem until re… read more
LegalGems
LegalGems
Juris Doctorate
10,176 satisfied customers
I was a 2nd t.d. holder on a owner occupied house in CA. I
I was a 2nd t.d. holder on a owner occupied house in CA. I foreclosed. The owner is still on the property and still making payments on the 1st. I have tried to get a demand from the 1st to get a payof… read more
Attyadvisor
Attyadvisor
Doctoral Degree
6,888 satisfied customers
Purchased a condo several years ago ,after living there for
purchased a condo several years ago ,after living there for over a year i needed another parking stall, the unit came with 2 parking stalls in underground garage, as my grandson started driving. so i … read more
Attyadvisor
Attyadvisor
Doctoral Degree
6,888 satisfied customers
My wife and I have started pro se on a quiet title action,
Hello, my wife and I have started pro se on a quiet title action, however we are deciding to hire an attorney. … read more
Ray
Ray
Lawyer
Doctoral Degree
7,367 satisfied customers
As a Licensed contractor in kalamazoo michigan do i need to
As a Licensed contractor in kalamazoo michigan do i need to file a permit to remove and replace the roof of a residential home?… read more
WiseOwl58
WiseOwl58
JD Honors Graduate
3,511 satisfied customers
Credit expert legal person with experience in finance. I
This is for a credit expert legal person with experience in finance. I have a substantial Number of credit cards with balances, I Am taking care of some with a lower interest loan. For the ones with r… read more
Ray
Ray
Lawyer
Doctoral Degree
7,367 satisfied customers
If I own commercial property in California and a neighboring
If I own commercial property in California and a neighboring owner adds to his building into my property does he get right of ownership of that part of my property he built on like a squatter? … read more
Ray
Ray
Lawyer
Doctoral Degree
7,367 satisfied customers
Is there someone we can speak to by phone? Murrieta, CA.
Just need someone experience with assisting Landlords on tenant issue… read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
I am considering buying a cheap mobile home in an expensive
I am considering buying a cheap mobile home in an expensive "village" type mobile home park in Florida. If I change my mind and abandon the mobile home, with prior notice, can I continue to be held li… read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
I puchase a home, The seller agree to sell the home For
I puchase a home, The seller agree to sell the home For 100k. me buyer to pay closing. I agree to pay 105k out the door. This include closing. I made a contract at first Jackson bank for this loan. We… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
5,946 satisfied customers
A Lis Pendens is filed on a property and the attorney was
A Lis Pendens is filed on a property and the attorney was told not to file and he did The attorney involved does he have to notify the parties in writing prior to sending it the property is in Califor… read more
WiseOwl58
WiseOwl58
JD Honors Graduate
3,511 satisfied customers
After 37 years, we found out that we had been using about
after 37 years, we found out that we had been using about 400 square feet of a neighbors land. When we purchased our home there was an existing fence for what we assumed was the property line. We plac… read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
When selling a house in Atlantic County NJ is the property
When selling a house in Atlantic County NJ is the property required to pass septic if selling for cash (no bank or mortgage company)? … read more
Ray
Ray
Lawyer
Doctoral Degree
7,367 satisfied customers
I have a neighbor who built a storage on and against a
Hi I have a neighbor who built a storage on and against a retaining wall that is not his. Its on the property line. He has avoided the Dept of buildings inspectors. Noe the house is up for sale includ… read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
A will is in probate and I am expecting to inherit a Co-Op
A will is in probate and I am expecting to inherit a Co-Op apartment (paid for years ago) and move into it. My lawyer told me I could be rejected because, for ex., "the Co-Op Board doesn't approve of … read more
Infolawyer
Infolawyer
Lawyer
Doctoral Degree
7,657 satisfied customers
I own some real estate with my partner. We are looking to
I own some real estate with my partner. We are looking to split up the properties but he thinks he deserves more equity then me because he has added more to improve the value. I disagree but it look l… read more
Ely
Ely
Counselor at Law
Juris Doctor
4,899 satisfied customers
I live in the state of georgia and got behind on rent and
Second opinion] I live in the state of georgia and got behind on rent and the landlkrd wants my family out how many days do we have to leave… read more
LegalKnowledge
LegalKnowledge
Juris Doctor
27,473 satisfied customers
New house. Water damage in basement. Developer refuses to
New house. Water damage in basement. Developer refuses to pay damages. Property in NH … read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x