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Updated 1 day ago on . Most recent reply

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Jennifer Panian
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change Title of property to take carry over losses in anticipation of gift in future

Jennifer Panian
Posted

current SFH home is titled in husband, wife & daughter. Daughter is currently living in home as primary residence with two other tenants. Daughter does not currently have lease, but that can be done if required. Objective is to take the carry over losses in 2025 due to a change in status from passive to RE pro due to meeting threshold in 2025. Long term objective (next 3 years) is for the daughter to take over ownership of the property as her own. Need guidance on proper strategy, best legally without tax flags. (There will always be another renter besides her living in the property with valid lease until she takes ownership)

Should daughter be taken off title, get proper lease and take carry over loss in 2025

Can she stay on title, get proper lease with the objective that she is on title for estate reasons in name only 

Remove wife and daughter off title so only husband is on title since the single member llc is in his name and get property titled in the LLC instead. Will need transfer tax paid, the above options do not require transfer tax to be paid. Don't mind paying tax whatever is best

In 3 years if we wanted to gift the property to daughter, what issues do you see in future if any and how to avoid any flags

If unsure, should a tax attorney in Porland ME or just a RE lawyer be able to advice.  I have no contacts there currently

Thank you 

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