Advertisement

Incomplete Answer

February 25, 1990

Don Campbell's answer ("Home Sale Qualifies for Tax Exclusion" Feb. 4) to the 38-year-old son whose mother put his name on her deed for convenience was incomplete.

Campbell failed to mention that it is a taxable transfer, subject to gift tax, when a parent adds a child's name to the parent's deed, even if it is only for convenience. The property value equivalent of the first $10,000 may be excluded, but the additional amount would subject the parent to gift tax. There are other, less costly ways to accomplish the parents' objective. Complete advice could be obtained from a tax attorney who specializes in estate planning.

JOSEPH J. PRASKE

Woodland Hills

Praske is an attorney.

Advertisement
Los Angeles Times Articles
|
|
|