QUESTION
Can setting up a tenancy in common be a taxable event?
Asked on Jan 25th, 2011 on Taxation - California
More details to this question:
Question concerns tenancy in common and taxes. If I purchase a property and set up title as tenancy in common with my son, then sell him my share for $1, is this a taxable event? Would it make any difference if the tenancy shares were not equal (e.g., me 1%, him 99%).
1 ANSWER
Bruce Givner
If you give him an undivided 99% interest as a tenant in common, then he owns 99% and - unless he pays fair market value for it - that is a gift.
Answered on Jan 25th, 2011 at 6:58 PM