QUESTION
Can my husband buy my house as an investment property?
Asked on Oct 28th, 2013 on Estate Planning - Idaho
More details to this question:
We just got married last month and live in one house under his name and I rent out my house that is in my name. Can he buy my house as an investment property from me since it's never been in his name and he's never paid anything on/toward it? Thanks.
15 ANSWERS
Yes. There are a number of ways to do this, but you need to consider a lot of factors: tax issues, inheritance, liability, etc. I recommend that you consult a law firm with good estate planning, asset protection, tax and real estate specialists.
Answered on Nov 19th, 2013 at 6:21 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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Yes, he can. You will have to determine if you will have a capital gain.
Answered on Oct 31st, 2013 at 8:08 AM
David Thomson Egli
Your husband can buy your house. However, as a general rule no gain or loss is recognized on transfers between spouses. IRS Pub 17 states "Any transfer of property to a spouse or former spouse on which gain or loss is not recognized is treated by the recipient as a gift and is not considered a sale or exchange. The recipient's basis in the property will be the same as the adjusted basis of the giver immediately before the transfer. This carryover basis rule applies whether the adjusted basis of the transferred property is less than, equal to, or greater than either its fair market value at the time of transfer or any consideration paid by the recipient. This rule applies for purposes of determining loss as well as gain." The fact that no gain or loss is allowed and the carryover basis rule would result in your husband having the same basis as you did immediately before the transfer, should be considered before going through with such a purchase.
Answered on Oct 31st, 2013 at 7:54 AM
Based on the facts you gave, the house is your separate property and you can sell it to whomever you please. However, there may be some additional relevant facts that would cause your house to be treated as community property. If that is the case, then your objective can still be accomplished, but it will be a much more complicated process to do so.
Answered on Oct 31st, 2013 at 7:45 AM
Admiralty / Maritime Attorney serving Monrovia, CA
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The Law Office of Nathan Wagner
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Yes, he can buy your house, if you choose to sell it to him. Or you can give it to him as a gift. But the more important question is whether it is a good idea to sell it to him. You should talk to a local estate planner about your goals for this transaction.
Answered on Oct 31st, 2013 at 7:15 AM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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You can sell your house to him, but he won't get an increase in basis.
Answered on Oct 31st, 2013 at 7:12 AM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Well, he could buy it, but does that make sense? You've used the house as a rental, so there are tax implications if you sell it. Talk to your tax guy, talk to your investment advisor.
Answered on Oct 31st, 2013 at 7:00 AM
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Probably but I am not sure why you would want him to. I suggest you speak with an estate planning attorney to discuss your goals to make sure your objectives are met without adverse estate planning and tax consequences. At James Law Group we make every effort to respond to you quickly and efficiently. This means we may be responding to you from a mobile device. As you know, responding on these devices can result in typographical errors that my otherwise not occur. In order to provide this extra service, please be aware of this and excuse any errors that may be caused by responding in this forum. The content of this message is protected by attorney-client privilege.
Answered on Oct 31st, 2013 at 6:59 AM
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Sure you could agree to sell it to him.
Answered on Oct 31st, 2013 at 6:11 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Yes, but be sure to obtain the services of an appraiser, and consult with a CPA as to any potential tax liability as to the gain in value upon sale.
Answered on Oct 31st, 2013 at 5:49 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Perhaps, but I am not sure I see the benefit. I suppose it depends on how you intend to file taxes. I do not think there would be a legal prohibition, but it sounds like a situation that would likely be highly scrutinized by the IRS as a potential tax scheme. If there is a non-tax reason to do this, then that might make a difference.
Answered on Oct 30th, 2013 at 6:17 AM
You should consult with a CPA or tax attorney about the tax issues before changing title to your house.
Answered on Oct 30th, 2013 at 6:11 AM
Yes, you can sell the house to whomever you choose, including your husband. However, there may be tax consequences for both of you that you should consider before you do anything.
Answered on Oct 30th, 2013 at 5:49 AM
Yes, but why would you want to?
Answered on Oct 30th, 2013 at 5:33 AM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Sure, but be careful. If you put the money in a joint account, what he pays you becomes community property. If you want to maintain the proceeds as your sole and separate property, you need to keep them in a separate account in your name only.
Answered on Oct 30th, 2013 at 5:19 AM