Legal Question in Real Estate Law in California

My uncle put me on a deed of a house to save money in taxes by deducting it from capital gains tax when I was four years old. I did not know about this until I turned 26 years old. I never reported it to the IRS or payed taxes for the property. Is there any way that I can deny my ownership ? What are my alternatives in this matter?


Asked on 10/11/10, 5:50 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

The reason given for your uncle's "putting you on the deed" does not make sense as expressed. Capital-gains taxes are paid by a seller on the profit from a sale. Who is telling you this was his reason? The story is getting garbled in the retelling.

Property is transferred by a deed, and the status of ownership is reflected by the title. If your uncle put you on anything, it was probably "on title," not "on deed." In what respect were you put on title? As sole owner? As a joint tenant? You need to check the records for this property at the County Recorder's office to see who is the owner or who are the owners as shown therein.

Is the uncle still alive? This could make a difference in ownership, and also in whether you can get further explanation.

Generally, a deed in order to be effective must be delivered and accepted. However, when the grantee is a minor, delivery and acceptance are presumed if the deed is given as a gift and the transfer is otherwise beneficial to the minor.

You probably are an owner, but there is just not enough information given to be sure of that, let alone to determine whether you are the sole owner or not. As to telling the IRS or paying any taxes, unless you have been receiving rents or have already sold, you presumably have no need to report or pay taxes to the Feds, but someone needs to be paying the property taxes to the county!

Why would you want to deny your ownership? Is the property a toxic dump? An attorney could look up the property records and advise you on tax issues, but would need a lot more information than is given here.

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Answered on 10/16/10, 7:06 pm


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