Q: Will adding me to my brother's home title trigger a gift tax?

A: Yes, being added you to your brother's home title will likely trigger a gift tax for your brother, as it constitutes a transfer of property interest. The value of the gift will be based on the fair market value of the 50% interest in the property. If the value exceeds the annual exclusion amount, your brother will need to file a gift tax return, although he may not owe any gift tax if his total taxable gifts remain below the lifetime exemption amount.

A: When you're added to your brother's home title in Fremont, whether this triggers a gift tax depends on the specifics of your arrangement. Since you plan to share the mortgage responsibility equally, this suggests a legitimate financial interest rather than a gift. However, if your brother has substantial equity in the home already, the IRS might view transferring half of that equity to you as a gift that exceeds the annual gift tax exclusion.

The process itself is straightforward and involves executing a new deed, recording it with Alameda County, and possibly refinancing the mortgage to add you as a co-borrower. Your brother's mortgage lender will need to approve this change, which typically requires a credit check and income verification from you. The lender might also charge fees for modifying the loan.

California has specific property tax considerations too. Under Proposition 19, transfers between siblings don't qualify for property tax reassessment exclusions that were previously available, which might lead to a partial reassessment of property taxes. I recommend consulting with both a tax advisor and real estate attorney in California before proceeding, as they can provide guidance tailored to your specific situation and help you structure the arrangement to minimize tax implications.