@Anonymous :There is no gift or gift tax involved. A property share acquired by death of a joint tenant is not a gift.
@soultax09 : <<what's the difference if the father and son buy property held as jtwros and father pays 90% at closing and son pays 10% at closing ****OR**** father gives son cash right before closing and father and son each pay 50% at closing? Results should be the same but they're not according to the IRS. >>
It might make a very big difference when son sells the property. If the split were 50/50, only 50% of the cost basis would be stepped up to the FMV at death; if the split is 90/10, 90% of the cost basis is stepped up. The higher the cost basis, the lower the capital gain tax the son will have to pay at sale.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
