Legal Question in Real Estate Law in California
Hi. My wife and I own a home. We would like to sell our house in the near future. We are hoping to get the tax exemption for the full $500,000. I understand we must be married (which we are, and file our taxes jointly. However my name IS not on the title of the house. It is solely in her name and her mother's name--my wife owns 75% of the house. My questions:
1- In order for married couples (that file taxes jointly) do BOTH names have to be on the title of the house in order to get the full $500,000 tax exemption?
2- In our case since her mother owns 1/4 of the house, how does this affect the tax exemption my wife can get? My wife's 3/4 portion stands to profit roughly $700,000 in capital gains.
Many thanks,
James
1 Answer from Attorneys
Between your mother-in-law and your wife, you are about to net nearly $1 million in capital gains and you're trolling the internet for free advice? On a complex tax issue? Contact a tax accountant or tax attorney in person and part with a few hundred dollars for complete advice on your situation.