If owners are single owner (not joint) and if they file federal taxes separately, is it possible it's a tax strategy to bank the 250k in cap gains, or reset the cost basis?

Anonymous wrote:LOL ! Read the thread title too quickly and wondered why one might want to tilt a house.

OP: Maybe due to potential liability issues if in, or expecting, litigation = essentially asset protection.

Is this something people do when they’re worried they’ll be sued by someone?

With that house I assume the are foreign so might ha something to do with that.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If one owner is older, you could get tax relief. Alternatively, you could claim the property as an asset.

OP here. Could you explain this further? What kind of tax relief? Do you mean from the county?

Also, what would be the purpose of claiming the property as an asset and in what kind of situation?

Say you bought the house for $300k and when you die it’s worth $1m. The beneficiaries will get a new tax basis of $1m instead of the prior $300k thus saving taxes on $700k. It’s the height of stupidity when old people add their kids to the title of assets right before they die.

This is a married couple we’re talking about, not a parent and a child. Usually married couples own as joint tenants with right of survivorship.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If one owner is older, you could get tax relief. Alternatively, you could claim the property as an asset.

OP here. Could you explain this further? What kind of tax relief? Do you mean from the county?

Also, what would be the purpose of claiming the property as an asset and in what kind of situation?

Say you bought the house for $300k and when you die it’s worth $1m. The beneficiaries will get a new tax basis of $1m instead of the prior $300k thus saving taxes on $700k. It’s the height of stupidity when old people add their kids to the title of assets right before they die.

I think pp was talking about property tax relief, not the federal step up in basis.

Anonymous wrote:

Anonymous wrote:If one owner is older, you could get tax relief. Alternatively, you could claim the property as an asset.

OP here. Could you explain this further? What kind of tax relief? Do you mean from the county?

Also, what would be the purpose of claiming the property as an asset and in what kind of situation?

Say you bought the house for $300k and when you die it’s worth $1m. The beneficiaries will get a new tax basis of $1m instead of the prior $300k thus saving taxes on $700k. It’s the height of stupidity when old people add their kids to the title of assets right before they die.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If one owner is older, you could get tax relief. Alternatively, you could claim the property as an asset.

OP here. Could you explain this further? What kind of tax relief? Do you mean from the county?

Also, what would be the purpose of claiming the property as an asset and in what kind of situation?

https://www.fairfaxcounty.gov/taxes/relief/tax-relief-seniors-people-with-disabilities

If your income is low enough and you are over 65, you might not pay any property taxes as I understand it.

If you are trying to get a loan, you could use the house as collateral.

But why would an older married couple flip the ownership back and forth every few years? Isn’t there a danger if one dies and the other one is not on the title?

Anonymous wrote:

Anonymous wrote:If one owner is older, you could get tax relief. Alternatively, you could claim the property as an asset.

OP here. Could you explain this further? What kind of tax relief? Do you mean from the county?

Also, what would be the purpose of claiming the property as an asset and in what kind of situation?

https://www.fairfaxcounty.gov/taxes/relief/tax-relief-seniors-people-with-disabilities

If your income is low enough and you are over 65, you might not pay any property taxes as I understand it.

If you are trying to get a loan, you could use the house as collateral.

Anonymous wrote:What the heck does S/O mean?

Spin off.

What the heck does S/O mean?

Anonymous wrote:If one owner is older, you could get tax relief. Alternatively, you could claim the property as an asset.

OP here. Could you explain this further? What kind of tax relief? Do you mean from the county?

Also, what would be the purpose of claiming the property as an asset and in what kind of situation?

Anonymous wrote:If one owner is older, you could get tax relief. Alternatively, you could claim the property as an asset.

Tax treatment is MUCH better for heirs to inherit a house instead of the older owners adding them to the title prior to death.

If one owner is older, you could get tax relief. Alternatively, you could claim the property as an asset.

LOL ! Read the thread title too quickly and wondered why one might want to tilt a house.

OP: Maybe due to potential liability issues if in, or expecting, litigation = essentially asset protection.

On the thread about the large addition being built in Fairfax County, posters have pointed out that the ownership of the house in question has flipped back and forth between two owners over the years, apparently an older married couple.

Why is this done? What are the advantages or disadvantages? Is it better in some ways than owning as joint tenants? I’ve never heard of doing this before, so just wondering what the purpose is and if there are reasons others should consider this approach.