[fuyuki]

Hi All,

Let’s say an adult child is purchasing a property with his/her own funds and decided to add his/her parent’s name to the deed before finalizing the purchase. Would this consider a gift of half of downpayment or not since the parent will “own” half of the asset.

[tuanxn]

Yup, it's considered a gift of half the property.

https://www.journalofaccountancy.com/issues/2009/feb/creatingjointownership.html

[fuyuki]

@tuanxn: even if this happen before the purchase of property? I know this will trigger a gift of half property if you already own the property, but what if you don't own the property yet but is in process of purchasing it. This is a gray area when I am studying for Reg that they didn't really talk about it.

Thanks,

[Author]

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