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 Richard Your Own Question
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55720
Experience:  29 years of experience as a tax, real estate, and business attorney.
Type Your Tax Question Here...
Richard is online now
A new question is answered every 9 seconds

If my wife and I want to live separately but we own a home

Customer Question

If my wife and I want to live separately but we own a home together as JOINT TANENTS IN COMMON, and I am in escrow at this time to purchase another home of my own to live in. What is best for TAX PURPOSES? Or what are the TAX CONSEQUENCES of holding the title to reflect this house as;
Submitted: 11 months ago.
Category: Tax
Expert:  Richard replied 11 months ago.

Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 11 months ago.

There would be no estate tax consequence because upon the death of one spouse, because CA is a community property state, the basis of the property will be adjusted to its fair market value at the date of death so if the property is then subsequently sold at that fair market value, there would be no gain on the sale. If this is going to be a principal residence, then if sold during life, there is a $250,000 exclusion from gain if owned as sole and separate property; but a $500,000 exclusion from gain if owned by spouses. The right of survivorship does not impact the tax issue; rather, it simply means upon the death of the first spouse, title vests automatically in the surviving spouse and you avoid the need for probate.

Thank you so much 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 Good or Excellent (hopefully Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!