Mobile home transfer/gift tax to family member in San Jose, CA?

[Hau N.]

Hello BP members,

My parents live in a mobile home in San Jose, CA. It is owned free and clear under my sister's name; however, she would like to transfer the title to me.  There is no exchange in money involved as we consider the mobile home belongs to our parents.  Is there a transfer or gift tax?  I searched on CA Department of Housing but didn't see any fee/tax involved in the transferring title between family (http://www.hcd.ca.gov/manufactured-mobile-home/registration-titling/buy-sell-transfer.shtml). This sounds too good to be true.  

Thanks in advance.

Hau

[Janene Tompkins]

What you are describing does not necessarily fall under housing laws, but gift tax laws. If the gift is less than $14,000 of value, then there should be no FEDERAL gift tax due. For 2017, an individual can give another individual gifts up to $14,000 of value and not owe gift taxes. If your sister is married, she and her spouse can give you up to $28,000 worth of gifts. Money cannot  change hands to be considered a gift. I do not know about California gift and transfer tax laws.  You should consult with a CPA in your state for a definitive answer regarding CA transfer and gift taxes. Here is a link to the IRS website regarding federal gift taxes: https://www.irs.gov/businesses/small-businesses-se...

I hope that helps!