From:  Keith
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?

Answer

Date:  Fri, Jul 30, 2004

Hello Keith,

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.

Good luck!
Mike Gray

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