Community Property
July 20th, 2006
In community property states, there is an additional way that married couples can hold title to their Real Estate property, as community property assets. The community Property title is only available to married couples residing in certain states only. There are tax benefits to holding a property as a community property with community property law. Real Estate investors won’t have to deal with community property unless husband and wife are investing separately.
What are the benefits of holding a community Property title?
Community Property title is often a more favorable way for married couples to own property because it allows the spouse to not only inherit the property without estate tax, but also be able to take a step up in basis.
 |
That means that the surviving spouse inherits the Real Estate property at current fair market value and therefore would have no tax due upon an immediate sale. However, there are also issues surrounding community property. |
Community Property title for new couples
Often issue arise when new couples buy a property together and owns it as a community property and the marriage ends. Usually when people build a home together and raise a family there, it is a gray area to determine what are community property and what are separate properties. The legal title itself may not even be held jointly but in the name of just one party and not the other.
Posted in 
Tags: