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Foreclosure Forum |
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Holding Title as partnersIn Reply to: Holding Title as partners posted by Bob H. on June 11, 2003 at 8:13 PM
: Hi Ward. I have a question. I want to do a 50/50 split with an investor so we both get the tax write off and make a profit. Without the benefit of the "Title Holding Trust" can we hold title for a short time as, Bob Investor a married man and Joe investor a married man in joint tenancy? Would we create problems on the title transfer with quitclaim deeds from our wives or is there a better way to hold title in a partnership? =========== Bob, Unless you and your partner are so close that neither of you mind if the other inherits your interest in the property (if either of you should die) then holding title as joint tenants with right of survivorship is OK. However, I think your respective wives would have some objection to that set-up. So I would put the title in the name of a trust, corporation, limited partnership, or LLC. Putting title in a title holding trust was the perfect answer until January 1, 2003. But now, because of the new 3.3% CA income tax withholding levied against the gross sale price of non-owner occupied real property, at the close of escrow, you might consider taking title in a group entity thats exempt from the tax. Hope this helps. Follow Ups: Post a Followup:
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