My Best friend wants to quit
Claim 50% of his apartment property to me as I will also be earning 50% of the profit, I will be handling all management, Maintenance, rent collecting property up keep etc. He has fallen very ill and since I have my own Apts i know what needs to be done to operate and keep his Apts profitable. My issue is taxes will He or I get taxed ? There is no
Plans to sell the property since this is his source of income. And if it did sell it would be transferred to a 1031 exchange to purchase a
Larger apt complex
Your friend should speak with an attorney and CPA.
There are legal and tax consequences to him quit-claiming 50% of the property to you.
If he was my client, just reading the limited facts and circumstances here, I might advise him that it would be better to retain full ownership and just pay you a monthly property management fee.
Larger apartment complex....in CA....50%....is your friend aware he might be giving you hundreds of thousands of dollars right off the bat? How do you feel about that?
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