Capital gains w/ parents home
I am going to take over my parents California home mortgage after they refinance to buy a home in Utah. They are looking in to adding me to the title of their home in San Jose, CA (both their names would stay). We plan on me living in the home as well. I’m concerned about capital gains and how this could possibly be a problem in the future. We may sell this home in 5 to 10 years from now, any advice? Also, if anyone knows a great real estate cpa that is familiar w/ California would love a referral :)
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#2 Commercial Real Estate Investing Contributor
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Ask a Financial planner, banker or estate attorney for cpa recommendations
Ask the cpa about primary residence and 2 out of 5 years residency. Can discuss 1031 but don’t think you need it
The real issue will be the financing on your purchasing or assuming the loan. Them staying on the title. Do they have enough collateral for their new purchase. Avoiding Gift tax if they transfer loan to you.