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Should I choose community property or joint tenancy on a new house that me and my wife are buying? What are the tax advantages of one over another?

Forum|Forum|4 years ago
August 5, 2021
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Buying a new house, was given choice between these two options /- right of survivorship by the title company. I am under the impression that there is a tax advantage w/ the "community property" when one of us die, having to do with stepped up basis for the entire property value instead of just 50% in joint tenancy (ie my wife will still likely have to pay significant capital gains on her 50% of the house even though my half will be stepped up).

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Best answer by Critter-3

First the closing company should answer this question and explain the differences however both are for titling purposes and doesn't mean anything on the income tax return ... either way the survivor will get the step up in basis.

What this will affect is how or if the property will need to be probated to remove the decedent's name.

Joint with right of survivorship only requires a death certificate be presented to remove the decedent and perfect the title and is the easiest, quickest & cheapest option.

Critter-3Answer

First the closing company should answer this question and explain the differences however both are for titling purposes and doesn't mean anything on the income tax return ... either way the survivor will get the step up in basis.

What this will affect is how or if the property will need to be probated to remove the decedent's name.

Joint with right of survivorship only requires a death certificate be presented to remove the decedent and perfect the title and is the easiest, quickest & cheapest option.