I understand that community property has a tax advantage upon the death of a spouse where no capital gains will be paid by the surviving spouse. Whereas, in case of joint tenants, the surviving spouse has to pay capital gain on the share of the deceased spouse. Is this right?
California tax advantage of California community property vs. Joint Tenancy
Mar 29, 2023
Last reply: 3 years ago
1 Replies
Essentially. To avoid the dilemma of whether to title property as joint tenants for ease of transfer on the death of one spouse, or community property for the tax benefit, California instituted a form of holding title called Community Property with Rights of Survivorship. If you hold title that way (only available for spouses) you get the benefits of both joint tenancy and community property.
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