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(This is in California) My mother owns a property that has a first mortgage on it. We've agreed that I will take over the house, its upkeep, maintenance, mortgage, taxes etc... She is currently the only one on title and the mortgage is in her name.
My understanding is that in California, under Proposition 58, she could transfer the property to me without triggering a reassessment for property tax purposes, however, I would lose the "stepped up" assessment basis down the road.
I also understand that even though I am currently paying the mortgage for her, I cannot deduct the mortgage interest since I'm not on title.
Goal: 1) be able to get the mortgage interest deduction presently and 2) effect the title transfer without triggering adverse tax consequences for either of us.
Any advice? Thanks!
My understanding is that in California, under Proposition 58, she could transfer the property to me without triggering a reassessment for property tax purposes, however, I would lose the "stepped up" assessment basis down the road.
I also understand that even though I am currently paying the mortgage for her, I cannot deduct the mortgage interest since I'm not on title.
Goal: 1) be able to get the mortgage interest deduction presently and 2) effect the title transfer without triggering adverse tax consequences for either of us.
Any advice? Thanks!