Possibility for gifting 50% gains to other deed holder for gains exclusion purposes

I have had two phone calls from this board about a post I made on TOB. Here it is.




We have found recently that a temporal holder can indeed, for a fee of about $4000 US, gift to the other person on a deed their 50% of capital gains to take advantage of the 5 year exemption rule. This has big possibilities for those couples who want to keep a US plated car with one person remaining temporal or who own more than one property and expect to sell both within a 5 year time frame. It also may work that the temporal person can then go permanenete and use on their own 5 year exemption with the other gifting their 50%. Talk to your favorite notario.

You would have one spouse be permanente and one temporal. Then when it came time for your house sale to close the temporal assigns the gain to the permanente, it took a week, the house closing is timed to be close and the permanente takes the gains and the exclusion.

I mention it only for informational purposes. We would not have known about the possibility except for a hint of the information during a conversation. I considered not mentioning it at all but it solved a problem for us and night for someone else, like anything legal check with your notario.

Those of you who were divorced up north probably did something similar in a quit claim deed. It is a similar concept only.