Tax Law (Questions About Taxes)/capital gains tax

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Question
From California.  I plan to add my wife to my separate property.  The rental property has many years of depreciation
taken.

If worst happens to me  (hope not), my wife will be on title by then.  If she were to sell the house or is foreclosed on,  will she be liable for the capital gains tax  from all the depreciations taken? The loan and title are in my name only.  She quitclaimed from the grant deed  any interest she had , which was nothing., at time of purchase.

Answer
Will,

Thanks for your question.

Should something happen to you, she would have a split basis. Half her basis wolfed be fron your transferred basis when the interest was conveyed to her. In other words, 1/2.of your basis at the time of transfer would to be attributed to her. The other half of her basis would be 1/2 of the fair market value at the time of your death.

Hope this helps.  

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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