Agent

Real estate title transfer has its drawbacks

Father loses tax benefits, creates probate mess for son

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DEAR BOB: If I sign and record a quit claim deed to my adult son for rental property I own, can I still receive the income directly from the tenants? Or does the income then have to go to him and be transferred to me? I don't want him to be responsible for the income tax – Val A. DEAR VAL: If you transfer the rental property title to your son via a quit claim deed, the property becomes his and you no longer own or control it. He then must report the rental income on Schedule E of his federal income tax returns where he can also deduct the applicable expenses. Purchase Bob Bruss reports online. You could manage the property for him, such as collecting the rents, but you no longer will be entitled to the income-tax deduction benefits because you no longer own the property. He, not you, then must report the rental income and deductions on his tax return since he owns the property. I do not recommend your deeding the property to your son, even if you are in poor health. As I o...