Differences in tax liability for joint home owning options?
December 5, 2012 8:18 PM Subscribe
My partner and I are about to buy a house together, and we're trying to decide how to do this. We're gay, and hence technically unmarried, and we're trying to figure out the tax implications of the different options.
posted by Tooty McTootsalot to law & government (10 answers total) 4 users marked this as a favorite
We're trying to decide between two options: (1) joint tenants with rights of survivorship, and (2) tenants in common. The reason we'd want to do with (2) is because with tenants in common, we can specify the amounts of the house we own. And since we put unequal amounts of money down, and we'd like for that to be reflected in the deed. In our state, however, (2) does not come with the rights of survivorship. We have both prepared wills that leave all property to the other person.
So either way, the other person will get their half of the property upon our death, but are there any differences in the tax liability on the surviving spouse? Is there any benefit to do rights of survivorship over specifying someone in their will?
I have a feeling this is a 'no', but I wanted to make sure. And is there anything else we should be thinking of?