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Rental Property deeded to sibling

Level 1

I have a client with a schedule E for a rental the past 8 years. The house was originally deeded to he and his father (this information was never given to me 8 years ago) when his father died in 2019 the deed was changed to he and his brother (this information was not given to me). On February 18,2020 the deed was changed and his brother is now the sole owner of the property. How do I process that on my client's return? The new owner has not decided if he will continue using the property as a rental.

After finding out the history of the deed at the end of 2020 I am at a loss on how to process this on his return and schedule E.

Any help would be appreciated.

RMP

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6 Replies 6
Level 15

I believe you will need more information.

 I have a client with a schedule E for a rental the past 8 years. The house was originally deeded to he and his father (this information was never given to me 8 years ago) Were father and son listed as Jt Ten, or Tenant in Common, or ... when his father died in 2019 the deed was changed to he and his brother (this information was not given to me). Was this passed via probate? Trust? Did brother inherit Dad's share?  On February 18,2020 the deed was changed and his brother is now the sole owner of the property. Did brother sell out to brother? Did brother gift to brother? DId one brother get another house and gave this one to equalize. How do I process that on my client's return? Ask many more question The new owner has not decided if he will continue using the property as a rental. This is not pertinent. Was it a rental in the year(s) you are doing the tax return?

 


ex-AllStar
Level 1

 I have a client with a schedule E for a rental the past 8 years. The house was originally deeded to he and his father (this information was never given to me 8 years ago) Were father and son listed as Jt Ten, or Tenant in Common, or (Do not know that and my client cannot find the original deed) ... when his father died in 2019 the deed was changed to he and his brother (this information was not given to me). Was this passed via probate? Trust? Did brother inherit Dad's share? (Brother inherited his dad's share upon the dad's death) On February 18,2020 the deed was changed and his brother is now the sole owner of the property. Did brother sell out to brother? Did brother gift to brother? DId one brother get another house and gave this one to equalize.(None of the above, the attorney just changed the deed to take my client off and have his brother sole owner) How do I process that on my client's return? Ask many more question (I have tried but they do not keep paperwork and this was all brought to light with the 2020 return as, by the way I deeded the house to my brother!)The new owner has not decided if he will continue using the property as a rental. This is not pertinent. Was it a rental in the year(s) you are doing the tax return? (yes)

0 Cheers
Level 12

The house was originally deeded to he and his father BY WHOM?...  in 2019 the deed was changed to he and his brother BY WHOM?... On February 18,2020 the deed was changed BY WHOM?

Level 1

By his father's attorney (he and his father). His father passed away and his brother's name was added to the deed through his dad's will. His brother then was deeded the house in 2020 by an attorney.,

His brother never received income from the rental the entire time it was rented and was not an active participant in the rental.

0 Cheers
Level 15

 Ask his father's attorney and then the attorney who did the second transfer.


ex-AllStar
Level 15

"Do not know that and my client cannot find the original deed"

For my County, you go online to the property map, zoom to that lot or parcel, and there is a pop out showing all owners of record. Or, your client goes to the courthouse and asks. It's public record. So is the tax filing, to see if anyone processed this as gift. And attorneys keep records; your client might not know, but attorneys have records.

Your client needs to do some digging.

 

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