Joint Tenancy Problem

[strawgrasper]

OK, my problem is this. Almost seven years ago a parent of mine bought a condo with both of us listed on the deed as joint tenants, heck, I remember signing papers for the place. Months after Father has passed and the tax return is about to filed, I have been told that any joint tenancy DOES NOT MATTER. What's more, that the full amount of the condo's purchase price must be taxed. I have been told that this is because I personally never payed for the property and it was never formally "gifted" to me. I am more than a little skeptical on this and would appreciate any real hep here.

Oh, and if it makes any difference, the property is in the District of Columbia.

[4eyedbuzzard]

Yes, virtually all the decedant's assets held in his name(in this case his pro-rated share of the condo is 100% as your contribution was 0) are part of the gross estate for IRS puposes.

http://www.irs.gov/businesses/small/...8143,00.html#2

You avoid probate tax and process with the JTWROS, not estate tax. Your new cost basis in the property will be the fair market value included in the gross estate.

That said, is the estate over the $2 million exemption from federal gift and estate tax? http://en.wikipedia.org/wiki/Estate_..._United_States

Some estate planning tips(just for starters - it's really complex): http://www.smartmoney.com/estate/ind...tory=estatetax

[strawgrasper]

Yes, it is over $2 million

[4eyedbuzzard]

Then it is what it is. I'd assume you've got a good lawyer and accountant handling the probate and tax filing requirements.

One other remark. Earlier you said the "the full amount of the condo's purchase price must be taxed". My understanding is that the condo's fair market value at the time of death, not the purchase price, is the amount that should be included in the gross estate. I'd defer to the expert opinion of your lawyer and tax accountant on this though for filing purposes, if you catch my drift.