Asking for a friend. Friend has own house worth $280k and equity of $180k. Son is going to trial soon and he has at least 10 felony counts. Public defender said the prosecutor will not cut a deal and so son will be locked up for many years. So is divorced and has no income, and in foreclosure due to 6 months past do. Public Def recommends selling house. Since he is on drugs the son thinks they wonts take the house.
The father knows they will the it. Father had durable power of attorney on son. The question is whether to sell house as PoW once the son is incarcerator, or should he do a quit claim deed to transfer house to the father. In either of these to scenarios is there capital gains or if sold be father in the next couple months it is income? Sone has owned it for maybe 15 years. Who ends up with the tax burden and who, the son f the father?
Thanks
