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Posted by Stuart A. Bronstein on April 16, 2007, 6:23 pm
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> This situation is that my parents created a trust some years
> ago, leaving certain assets to my 3 siblings, and the family
> home to me. Home is paid for and under Prop. 13.
>
> My bother told me that he read someplace I might lose the
> Prop. 13 status when I inherit, but from what I've read on
> line, that doesn't seem to be the case. He thought that if
> my parents made me a "tenent in common" I would keep the
> Prop. 13 status. Again, from what I've read, that doesn't
> seem necessary.
You're right. But you do have to do something when your
parents die to be eligible for the exemption. You have to
file a Preliminary Change of Ownership form notifying the
county of the change of ownership. You also have to file
a form to claim the parent-child exemption. If you don't,
you could lose it.
> But, my reading also made me wonder if their might be other
> tax advantages to becoming a tenent in common?
Actually it's the opposite. If you become a tenant in common
while your parents are alive, you will likely have a lower
basis in the property, and thus higher income tax, when the
property is eventually sold after they die.
Stu
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