Is 50/50 ownership feasible in regards to taxes?

[Query1234]

What is the name of your state? CA

My husband and I are contemplating purchasing with his father and father's wife a triplex unit. My questions are the following:

Can both parties claim tax exemptions on the property?

What type of financial repurcussions are there if an outside party comes after one of us financially (e.g. liens or unpaid obligations etc)? Will it affect all 4 of us? or are there laws saying it can only affect the person who's responsible?

If one of the 4 people involved passes away or should there be a divorce what happens?

What type of paperwork should we have an attorney process to insure equal ownership of the property?

Can one party refinance or make renovations without the other party's consent?

Thank you for your help and time.

 

[FarmerJ]

All of those concerns you have can be very easily handled by a Attorney . If its all set up ahead of time in writting like a partnership agreement if you want to call it that . Then there can be few hassles when or if a divorce happens or a death . It would be worth every penny to pay for a legal consultation If you cannot get one for free . Rather than waiting untill you do have legal problems .

 

[HomeGuru]

What is the name of your state? CA

My husband and I are contemplating purchasing with his father and father's wife a triplex unit. My questions are the following:

Can both parties claim tax exemptions on the property?

**A: what kind of tax exemptions ie. homeowners, homestead, State, Federal, senior, handicap etc.? Post tax questions on the Tax Law board.
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What type of financial repurcussions are there if an outside party comes after one of us financially (e.g. liens or unpaid obligations etc)?

**A: same exposure as if only you and husband owned the property but doubled.
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Will it affect all 4 of us? or are there laws saying it can only affect the person who's responsible?

**A: a lien or judgement would go on title to the whole property, thus it would affect the property that all 4 hold title to.
A lien or judgement is not divideable by property owner interest although if the property were to be foreclosed on to pay of the lien or judgement, only the affected party's share of the monies would be taken (subject to community property laws) to satisfy the creditor.
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If one of the 4 people involved passes away or should there be a divorce what happens?

**A: this question is too broad and vague but the answer would be entirely dependent on the type of tenancy that the various owners hold, any will or Probate Court directive and divorce decree and property distribution agreement.
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What type of paperwork should we have an attorney process to insure equal ownership of the property?

**A: it would be up to your attorney to decide. Options include an agreement prior to contract, instructions in the contract etc. with the final document being the deed referencing the tenancy and percentage of interest for each indivdual and/or couple.
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Can one party refinance or make renovations without the other party's consent?

**A: no and yes. The lender will require consent of all title holders. You could renovate the outhouse without your in-laws consent. Renovation on a larger scale would require approval from all owners. Common sense dictates.
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Thank you for your help and time.

**A: you have posed a bunch of well intentioned questions. Your next step would be to hire an attorney to further advise you since buying property with other people takes knowledge, understanding and preparation. Learn the upsides and downsides prior to moving forward.