California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.51 - Transfer to Third Person of Real Property Owned by Husband and Wife in Joint Tenancy Created on or After September 11, 1957

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Unless otherwise indicated it is assumed in this regulation
					 that the transfers were not made for an adequate and full consideration in
					 money or money's worth.
If a joint tenancy between husband and wife in real
					 property is created on or after September 11, 1957 and before January 1, 1981,
					 either by one spouse alone or by both spouses, and, pursuant to Revenue and
					 Taxation Code Section
					 15104.5,
					 then in effect, the donor does not elect to have the creation of the joint
					 tenancy treated as a transfer by gift, and thereafter the real property is
					 transferred prior to January 1, 1981 by the spouses to a third person, each
					 spouse is deemed to have made a gift to the third person to the extent of, or
					 in proportion to, his/her contribution to the joint tenancy.
If a joint tenancy between husband and wife in real
					 property is created on or after September 11, 1957, and before January 1, 1981,
					 either by one spouse alone or by both spouses, and, pursuant to Revenue and
					 Taxation Code Section
					 15104.5,
					 then in effect, the donor does not elect to have the creation of the joint
					 tenancy treated as a transfer by gift, and thereafter the real property is
					 transferred after January 1, 1981 by the spouses to a third person, each spouse
					 is deemed to have made a gift of an undivided one-half interest in the property
					 to the third person.
This regulation may be illustrated by the following
					 examples:
EXAMPLE (1). A in November, 1957, with his own separate
					 property created a joint tenancy in real property, having a market value of
					 $30,000, in favor of himself and his spouse, B. A did not report the creation
					 of the joint tenancy as a transfer by gift in his gift tax return for the year
					 1957. In July, 1958, A and B transferred the real property to a third person,
					 C. The market value of the property at that time was $31,000. There was a gift
					 in 1958 of $31,000 from A to C.
EXAMPLE (2). A and B, husband and wife, in November, 1957,
					 with their own separate and individual funds purchased a parcel of real
					 property in joint tenancy for $30,000. A contributed $25,000 and B contributed
					 $5,000 to the purchase price. A did not report the creation of the joint
					 tenancy as a transfer by gift in his gift tax return for the year 1957. In
					 July, 1958, A and B transferred the real property to a third person, C. The
					 market value of the property at that time was $31,500. A made a gift of $26,250
					 and B a gift of $5,250 to C in 1958.
EXAMPLE (3). A and B, husband and wife, in November, 1957,
					 with community funds purchased a parcel of real property in joint tenancy for
					 $30,000. In July, 1958, A and B transferred the real property to a third
					 person, C. The market value of the property at that time was $31,500. A and B
					 each made a gift of $15,750 to C in 1958.
EXAMPLE (4). In 1965, A transfers his separate real
					 property, having a value of $25,000, to himself and his spouse, B, as joint
					 tenants. A did not report the creation of the joint tenancy as a transfer by
					 gift in his gift tax return for the year 1965. In June, 1981, A and B
					 transferred the real property to a third person, C. The market value of the
					 property at that time was $100,000. A and B each made a gift of $50,000 to C in
					 1981.
1. Amendment
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						16506,
						Revenue and Taxation Code. Reference: Section
						15104,
						Revenue and Taxation Code.