Changing Joint Ownership on Investment Property

[Anthony T.]

Hello BP community,

My brother and I own an investment property in California in our names (we also both reside in California).  

On the deed we are listed as Joint Tenants and we are looking to update it to Tenancy in Common.  

Two questions:  

- Is this going to trigger some sort of taxable event?  My research says no but there may be other steps we need to take I am not aware of.  
- Is this something we can do ourselves or do we have to get the help of a real estate attorney?

Thank you!

[Jason Zundel]

Hey Anthony, you are correct (under rule 462.040 in CA) that so long as the original transferors stay on title with the same percentage ownerships, then converting from joint tenancy to a tenancy in common will not be considered a taxable transfer.  CA being CA though, the slightest mistake will cause you problems, now or later on down the line.  Unless you are pretty comfortable with filing forms of this nature, I might recommend getting some help.  Doesn't have to be an attorney though, as a good title company could likely help you with this for much cheaper than a real estate attorney in CA.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.