Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
banchuin
Level 1

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?

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).
1 Best answer

Accepted Solutions
Critter-3
Level 15

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?

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.   

 

 

View solution in original post

1 Reply
Critter-3
Level 15

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?

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.   

 

 

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v