California Society of CPAs
Home       Members    Calendar    Who's On
Welcome Guest ( Login | Register )
        



CP Interest in Joint Property Expand / Collapse
Author
Message
Posted 12/16/2006 4:01:24 PM
Power Member

Power MemberPower MemberPower MemberPower MemberPower MemberPower MemberPower MemberPower Member

Group: Forum Members
Last Login: 3/12/2011 12:58:57 PM
Posts: 147, Visits: 823
A couple purchased a house with their son and took title as joint tenants. Mom & Dad put up 50% and so did the son.

Dad died and we're doing his 706. All assets other than this one are included in the Family Trust.

I think I should put the property in the bottom half of Schedule E at 50% then take off another 50% for Mom's CP interest. Agree?

Mom wants the interest to go to the Bypass Trust. I don't think we can do that but what happens to it? Does son acquire 1/2 of the 25% interest of Dad? Does Mom just continue as a 50% joint tenant?

Mary Kay Foss

Post #290
Posted 12/17/2006 9:34:19 AM
Member

MemberMemberMemberMemberMemberMemberMemberMember

Group: Forum Members
Last Login: 8/30/2010 8:41:47 AM
Posts: 33, Visits: 104
Mary Kay, I agree with you that the decedent's 25% contributory interest belongs on the Schedule E.  I also agree that it doesn't belong in the trust.  The son and mother are now considered as each owing a 50% interest in the property as JT.  If they want to put it into the trust they would need to change title to tenancy in common or some other form that does not have survivorship rights to it.  

I would think that each of the two surviving tenenats would receive a step up in basis equal to 1/2 of the 25% interest included in the decedent's estate.  Also I would think it would be agressive to adjust the basis for the surviving spouse's 25% contributory interest as a community property interest.  

Post #291
Posted 12/17/2006 6:33:48 PM
Power Member

Power MemberPower MemberPower MemberPower MemberPower MemberPower MemberPower MemberPower Member

Group: Forum Members
Last Login: 1/6/2010 6:00:00 PM
Posts: 83, Visits: 123
Hi, Mary Kay

Please tell us the exact vesting on the deed in.

John Jacobson

Post #292
« Prev Topic | Next Topic »


All times are GMT -8:00, Time now is 12:41pm

Powered by InstantForum.NET v4.1.4 © 2012
Execution: 0.078. 8 queries. Compression Disabled.