Question

Paying tax in California for adding a co owner to a house?

Forum|Forum|6 years ago
November 12, 2019
1 reply
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I am a foreign citizen on H1B visa and I purchased a house in San Francisco last year. I would like to add my mother as the co owner of the house, she is an Indian citizen though and just visits me for few weeks every year. Can I make her 50% co owner of the house? If so what will be the tax implications for me and her?

DJS

Employee

Adding someone to your house deed requires the filing of a legal form known as a quitclaim deed. When executed and notarized, the quitclaim deed legally overrides the current deed to your home. By filing the quitclaim deed, you can add someone to the title of your home, in effect transferring a share of ownership. If you have an existing mortgage on the home, simply adding the individual without the mortgage company’s knowledge may violate your mortgage terms and you still remain responsible for the mortgage payments.

There are other considerations as well, and these are nicely spelled out in the following article: https://www.deeds.com/articles/adding-someone-to-your-real-estate-deed-know-the-risks/

The following article deals with the specifics of California information on change of ownership, including adding another owner: http://www.boe.ca.gov/proptaxes/faqs/changeinownership.htm

Answers are correct to the best of my ability but do not constitute legal or tax advice.**If this post is helpful please click on "thumbs up"**