How do you get your name removed from a joint ownership to an apartment building?

Question

I have a friend who's father had her sign to part ownership along with her stepmother to a apartment building when she was young. (her father was a forgeiner from China, along with her stepmother, and he did it so her stepmother wouldn't take everything, I think. Not a very

trusting fellow.) Well, he passed away over 10 years from terminal cancer and now the stepmother is still making profit from renting out the aparments in the building, but my friend never saw any of that money for some reason, but she still has to report to the IRS being part owner. She doesn't really care about the money from the place, but she wants to take steps to get her name off, make her stepmother the sole owner and to stop having to report to the IRS. Does anyone know of a legal way she can do this? (Plus her stepmother's English isn't good at all, she's an elderly woman and she's ignorant of legal matters. My friend would really prefer a way to do this without her.)

Answer 1

Getting removed as an owner is very easy. The real question is whether that's the best decision in her case.

Your friend should check with a lawyer and an accountant before making any decisions. I'm neither, so this is neither legal nor accounting advice.

However, although she has to report to the IRS being part owner, how is she being hurt? Depending on what forms she files, and the method the ownership is being held in (corporation, S Corp, LLC, joint tenancy, tenants in common), if she's not receiving any income from the property, then her taxes should be showing no income received. No income received, no taxes due.

Meanwhile, as another comment noted, the apartment building itself is a valuable asset. It's worth something, whether or not your friend is receiving any income from it. It may not be wise to simply give up that ownership interest. That's another angle for the accountant to pursue.

Then, after you have a strategy, go to a lawyer. The simplest way might simply be a quit claim deed. In it, your friend would be "quitting her claim"--giving up any interest she owes--to the stepmother. That's very, very easy. However, for a number of reasons, the lawyer might suggest a different approach. But, again, I'm not sure it'd be in your friend's best interest to simply give up her ownership in the building. Ultimately, though, that's her decision.

Hope that helps.

Answer 2

Your friend should consult either a lawyer or tax advisor on this one: But in general if she has equal title to the unit she can require to be paid half the rent, or even force a sale or depending on the title she maybe should stay the status if the step mother is up there in age, if the property it titled with right of survivorship then once the step mother passes away she would get the property without probate or what a will would state otherwise

she will have tax issue on a gift if she signs the property to the step mother

Answer 3

Your friend needs legal advice, not Yahoo advice.

Answer 4

Okay, I don't believe there is any way to resolve this problem without involving the stepmother.  What must take place to get her name off of the real estate is a new sales agreement between the two parties.  One dollar or more would seal the sales agreement; but you must have it notarized and for sure get good legal advice before doing such an important decision.  Before your friend decides to do this, she should consider whether or not she wants to throw away a vauable asset or not because that, in fact, is what she would be doing.  As far as the IRS and taxes, get help from an accountant to guide her in the right direction.  Other than that, a good lawyer will have to be sought out.