Transferring ownership of property
Posted date : Sep 19, 2022.
My father-in-law would like to transfer ownership of his property in Florida to my wife and me. We are thinking of joining the title with all three and, upon his passing, it would pass to my wife and me as surviving owners. Will that work to avoid capital gains or gift tax?
Ed.: The objective can be accomplished, but you need professional help to avoid the pitfalls. Capital gains tax is not payable on the passing of your father-in-law, but is deferred until and unless the property is eventually sold. Only $16,000.00 in value can be given to each of you and your wife in a year (2022). However, with proper structuring, gift tax on the balance can be avoided.