What tax is due when a parent quit claims a property to their child?
August 9, 2004
Date: Fri, 9 Jul 2004
Subject: Quit Claim and Property Taxes
What tax is due when a parent quit claimed a California rental property worth $500,000 to a son in 2003?
Date: Fri, Jul 30, 2004
This is a taxable gift. The tax depends on how much of the lifetime exemption equivalent was used before the gift. The lifetime gift tax exemption is $1 million. The transaction is reported on Form 709.
Remember to claim the exemption from reassessment for a change of ownership for a transfer from a parent to a child. Call the county assessor's office in the county where the property is located for the form and instructions.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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