This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Givner & Kaye Clarify Overlooked Real Estate Tax Implications Of Same-Sex Marriage Ruling

LOS ANGELES, Sept. 13, 2013 /PRNewswire/ -- A recent U.S. Supreme Court ruling that found the federal Defense of Marriage Act (DOMA) unconstitutional has opened up a number of favorable planning options previously unavailable to legally married same-sex couples.  Specifically, there are two real estate tax implications that have been largely overlooked that these couples should be aware of according to Bruce Givner and Owen Kaye, partners in the Los Angeles estate planning, asset protection and tax law firm Givner & Kaye.

In a recent article for the Daily Journal, California's largest legal news provider, Givner and Kaye noted that the recent United States v. Windsor decision now affects two important real estate exclusions for same-sex married couples:  the sale of a personal residence and the sale of investment property.

In the sale of a primary personal residence, the IRS allows a capital gains exclusion of $250,000 for singles and $500,000 for married couples.  Legally married same-sex couples that wed following Windsor (2010) are now entitled to the larger exclusion.  If one spouse dies, the surviving spouse is still entitled to the $500,000 exclusion if the residence is sold within two years of the first spouse's death.

As to the sale of investment property, one strategy that allows the owner/seller to not recognize the entire taxable gain in the year of sale is to enter into an installment agreement with the buyer.  On every $5 million of a promissory note, the seller can defer more than $1.6 million of tax. 

Before Windsor , a California property owner could sell his investment property to his same-sex partner and take back that partner's promissory note.  The buyer-partner could hold the property long enough to have a capital gain basis, then sell the property to an outside buyer without having to recognize any capital gain since his basis was equal to the note.  However, following Windsor , a legally married same sex couple would not be able to do this since they are now related for income tax purposes unless the buyer-partner holds onto the property for more than two years before selling to an outside buyer.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara counties.

For more information, visit www.GivnerKaye.com.

Contact:

Owen KayeGivner & Kaye310-207-8008 Email

Read more news from Givner & Kaye.

SOURCE Givner & Kaye

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,660.56 -12.04 -0.07%
S&P 500 2,053.07 +1.25 0.06%
NASDAQ 4,762.2810 +4.4020 0.09%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs