My parents own a house in Los Angeles, and we have talked about changing the name on the deed from my father and mother to me and my mother. How can i go about this?
Or you can buy a deed for $5.95 on the internet or creaate your own from a sample at your recorders office, all pertinent parties sign, notarize and file
It is a primary residence for now that will be turned into a rental within the year. the reason being is that my parents separated, my father now lives out in ventura, and i am planning on doing a new construction, so it would help to be able to get a HELOC with the house under my name and my mothers since we both live here.
well the deal is that my parents no longer get along, my father wont transfer the house soley to my mother, and my mother is afraid my father might sell the house whenever he wants to profit from half of the equity it has gained. I am not saying i WILL get a HELOC, i havent even talked to lenders yet. This house will become a rental property while we build a new home for us to live in, in a slightly better area.
Turning a private residence into a rental may not be so wise (tax wise) If your parents have lived in the home more than 2 years as their primary residence any gain up to $500K may be tax free. If you turn it into a rental and keep the property more than 3 years as a rental then you could less this great tax advantage. I suggest taking the tax free money then investing it in other rentals the way you get the tax advantages as well as you could leverage your money on investments.
I agree with GoBelly, if the gain is not taxable to your parents you are better selling and reinvesting.
If it makes economic sense as a rental at fair market prices perhaps your parents could sell it to you? They could either create a mortage on it for you or perhaps consider an installment sale. Not certian if the gain can be excluded from tax if an installment sale is used. Best to ask an accountant.
If your father transfers his interest to you it would be a gift--and gift taxes would most likely be owed. Sounds like best bet is to sell and start fresh with a new property. Best to seek professional advice.
Create a new deed and have your parents sign it. Go record it at the recorders office.
A title company will draw you up a deed for 60 bucks. All you have to do is record it.[ Edited by theREIkid on Date 02/05/2006 ]
Or you can buy a deed for $5.95 on the internet or creaate your own from a sample at your recorders office, all pertinent parties sign, notarize and file
Is it there primary residence, a second home, or an investment property. How old are your parents? What is the reason that you are doing this?
You should consult a tax professional before you add or remove a name to a deed. You might be incurring unwanted taxes.
It is a primary residence for now that will be turned into a rental within the year. the reason being is that my parents separated, my father now lives out in ventura, and i am planning on doing a new construction, so it would help to be able to get a HELOC with the house under my name and my mothers since we both live here.
well the deal is that my parents no longer get along, my father wont transfer the house soley to my mother, and my mother is afraid my father might sell the house whenever he wants to profit from half of the equity it has gained. I am not saying i WILL get a HELOC, i havent even talked to lenders yet. This house will become a rental property while we build a new home for us to live in, in a slightly better area.
Turning a private residence into a rental may not be so wise (tax wise) If your parents have lived in the home more than 2 years as their primary residence any gain up to $500K may be tax free. If you turn it into a rental and keep the property more than 3 years as a rental then you could less this great tax advantage. I suggest taking the tax free money then investing it in other rentals the way you get the tax advantages as well as you could leverage your money on investments.
I agree with GoBelly, if the gain is not taxable to your parents you are better selling and reinvesting.
If it makes economic sense as a rental at fair market prices perhaps your parents could sell it to you? They could either create a mortage on it for you or perhaps consider an installment sale. Not certian if the gain can be excluded from tax if an installment sale is used. Best to ask an accountant.
Get an attorney to advise you on the tax consequences. Do not be penny wise and pound foolish.
Brenda, are you the lawyer from Florida the fellow from WA was talking about?
[addsig]
No, not Brenda...I was referring to you, "76" as being the FL person giving questionable CA legal advice.
Questionable because in CA, 2 witnesses are not required for any deed.
Signed is good enough, but normally in front of notary with the NP then acknowledging it so it can be recorded.
If your father transfers his interest to you it would be a gift--and gift taxes would most likely be owed. Sounds like best bet is to sell and start fresh with a new property. Best to seek professional advice.