Legal Question in Real Estate Law in California

Re: My father recieved income on my property

Much depends upon the undisclosed details, including the amount of the income and the value of the management services. It's possible that you can convince the IRS that the income was all your father's as fair compensation for his services, and thus none of the past income would be imputed to you.

Nevertheless, the entire transaction plus your father's estate-related matters should be reviewed by one or more attorneys. You need someone with probate experience and someone with real estate experience, including knowledge of the taxation of real estate.

As an investment, the property probably was depreciable. You should have someone go over the books and records carefully, to see if your father managed it well and that there are no sloppy practices relating to rental pricing, insurance, collection and deposit of rent, tax reporting, taking of depreciation, and all those other aspects of income property management that now become your direct responsibility.

Also, check the property for safety issues, encroachments, deferred maintenance, tenant compliance with the leases, environmental problems and other visible problems.