Q: My father purchased a home in California while he was a green card holder but he is no longer an LPR
He is a Japanese citizen and lives abroad. He has one daughter who is a naturalized US Citizen and a son that is a LPR and Japanese citizen. What are the tax implications to transfer ownership to one of us? Should it just be specified on his will or is it better to do it while he is alive?
A:
If your father wants to transfer ownership of his California home to either you or your sibling, there may be tax implications to consider. The specific tax implications will depend on several factors, including the value of the property and the citizenship status of the parties involved.
If your father is no longer a U.S. resident or citizen, he may be subject to U.S. gift and estate tax rules. This means that if he transfers ownership of the property to one of you, he may be subject to gift tax if the value of the property exceeds a certain threshold. However, there are also exemptions and exclusions available that may reduce or eliminate the tax liability.
In general, it's a good idea to consult with a tax professional or an estate planning attorney who can help you understand the tax implications and advise you on the best course of action. They can also help you evaluate whether it's better to transfer ownership while your father is still alive or specify it in his will.
In some cases, it may be advantageous to transfer ownership while your father is alive, as this can help reduce the value of his estate and minimize potential tax liabilities. However, there may also be practical and legal considerations to take into account, such as ensuring that all parties are in agreement and that the transfer is properly documented.
Ultimately, the best approach will depend on your specific situation and your father's wishes. A tax professional or an estate planning attorney can help you evaluate the options and make an informed decision.
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