Posted on: 28th May, 2010 04:07 am
my sister is gravely ill. She wants to add her adult son, who has lived with her for years, to the title of her home through quit claim. Will her son be liable for gift tax? Would he have to pay capital gain tax? Would the property be reassessed for value? The home is in California.
Welcome jvalvo,
As there will be a property transfer, the county can reassess the value for tax purpose. The son will not be liable for the gift taxes. However, if your sister is transferring the property to her as a gift, then she will be liable for the gift taxes. If the son sells the property, then he will be liable for the capital gains taxes.
As there will be a property transfer, the county can reassess the value for tax purpose. The son will not be liable for the gift taxes. However, if your sister is transferring the property to her as a gift, then she will be liable for the gift taxes. If the son sells the property, then he will be liable for the capital gains taxes.