Posted by chet on January 31, 2005 at 18:48:44:
I would get a rental agreement in place w/ the BF. Had a bad experience w/ this (only it was an uncle GF) in the family.
When you take her name off, my understanding is that your basis on her 1/2 would be stepped up. The 1/2 you owned already retains the sname basis.
Check w/ a CPA for any shelter planing.
Deceased mother’s home - Posted by Tim Johnson
Posted by Tim Johnson on January 31, 2005 at 16:55:10:
Hello -
Thanks for helping me in my question;
My mother passed-away earlier this month. The California home she and I own (both names on title) will be adjusted to remove her name; only name on it will be mine.
Her boyfriend (Bob) currently lives in the home and he understands that I cannot afford her mortgage (since I have my own home/loan) therefore he has offered to take over the payments directly with the mortgage company, Until I sell it.
My Questions are:
1.) What reprocussions are there in allowing this - Do I risk losing the home to him?
2.) What Tax issues will I have once I remove her name from title; If I sell the home will I incur ‘Capital Gains Tax’? or will the ‘Parent to Child act’ take presidence? She/I have owned the home for 3 years.
Thanks if anyone can help answering my questions!