Should my sister and I be listed on the deed of our mother's home? My mother intends to live in the home for another 5 to 10 years. Are there any tax consequences for adding our names to the deed?

ANSWER

The BIDaWIZ Team's Answer:

By adding your names to the house, it's effectively treated as a gift for tax purposes. It is typically best that you do not have your names on the deed to ensure that you receive a step-up in basis when your mother passes (IRC Section 1014). If your name is on the deed, you inherit the adjusted basis of the property, which is typically not very favorable from a tax perspective when you eventually sell the home you inherit.