"Stuart A. Bronstein" <spamtrap[at]lexregia.com> wrote:
- quote -

Stu,

FYI -- The OP has posted this subject to misc.legal where a
discussion is in progress. Several other facts have come
out that the OP didn't present here. Here is a quite from
my recent post to the OP in misc.legal:

start quote---

PS: I noticed you posted this question to
misc.taxes.moderated also, however you didn't present them
with all of the facts that you have stated here, such as:

The property is presently held in a trust;

Your brother is named in the trust;

Your brother eventually expects to see some money from your
parents home sale;

Your father is going into an assisted living facility;

And possibly other facts that I don't recall at the moment.

All of these fact can have an effect on advice given -- that
is why I still suggest that before taking any action, you
speak with an estate planing attorney.

---end quote

--
-Ernie-

"There are only two kinds of computer users -- those who have
suffered a catastrophic hard drive failure, and those who will."

Have you done your backup today?

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"tfprusd[at]yahoo.com" <tfprusd[at]yahoo.com> wrote:

- quote -

You should really talk to a tax professional because there
are many factors that need to be considered other than those
you listed.

But based on what you have said, it appears to me that the
best approach will probably be to simply buy the property
from your parents, possibly on an installment sale. As long
as the value of the property is under $1,000,000 the
transfer of property from parents to a child should be
exempt from increased property tax.

Stu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Hello, my parents have a California house worth about
$800,000, they owe $375,000 on their first mortgage, $75,000
on their second. My father is ill and will be moving out of
the house soon, my mother will still live in the house with
us but will not be able to continue paying the mortgage. My
wife and I have talked it over with them and we are going to
sell our house and move into their house. The net proceeds
of our house sale will be about $175,000, we've lived in it
longer than 2 years so we won't pay capital gains. We want
to use that money to pay down their loans, then refinance
the balance - giving us a lower monthly payment. We also
want the house to be in our names if possible. What is
the best way to go about this while not increasing property
taxes based on the new apprased value? I was thinking along
these lines, am I going in the right direction?

-Quitclaim deed into our names, then refinance the loans
under our names (my wife and I)

or

-Pay down their loans with our proceeds then have my parents
refinance the loan in their name and we just pay the lower
mortgage for them.

or

-Have them refinance the loan, then quitclaim after?

or

-Purchase the home from them in a formal contract for a low
sales price compared to the actual value of the home. In
this case the purchase price would be ($375,000+$75,000),
which would pay off the loans and put the house into our
names. If we went this route would our property tax base
increase?

What do you think? any other routes or suggestions?

Thanks!

-tim

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >