Community Property

[S T]

How is Community Property Determined?

Is community property determined by the State the taxpayer lives in or in the State the ownership of property is in.

Example: Taxpayer h/w lives in California, owns California Real Estate, so that would more than likely be Community Property, correct?

Taxpayer lives in California, owns California Real Estate (Calif property more than likely is Community Property, unless separately stated ), but taxpayers also own real estate in North Carolina (non community property state). So is the Calif property Community Property and the North Carolina property NON-community property? Or is the North Carolina property also Community Property since the taxpayer resides in a Community Property State?

The question is for tax purposes, not legal estate/divorce purposes.

Sandy

[Black Bart]

S T

Girl--what're you doin' up this late... or early?

Guess you'll have to wait a while on this subject. Bird knows about it. I don't.

[Unregistered]

Community Property

Just living in a community property state doesn't make the property community property. The property must be held (titled) as 'Community Property' not as JTWROS. I don't think you could title property located in a non-community property state as 'Community Property'

[Jesse]

Could be either

"Is the Calif property Community Property and the North Carolina property NON-community property? Or is the North Carolina property also Community Property since the taxpayer resides in a Community Property State?"

I think the answer to you're question is "it depends".

You'd have to look at all facts and circumstances. How is the property in the noncommunity state titled? When was it purchased, before or after the marriage? It could be mixed with some assets being community and some noncommunity.

I haven't run into the situation but was told at a seminar that I attended that concerning Wisconsin community property, if the property was acquired before 1986 (Wisconsin became a community property state in 1986) and the title of the property was not changed it could still be considered noncommunity property. In this case you'd have to look at the use too; is it the primary residence that now co-mingled funds are paying for and both are using, but is titled only in one spouses name because it was premarital property? Or, is it a cabin that was bought premarriage and was never used by spouse that entered the marriage? There could be a lot of variables.

[RLymanC]

Community Property

This supports my understanding also.

"As a rule, marital interests in money and property acquired during a marriage are governed by the law of the domicile at the time of their acquisition, even when such money and property is used to purchase real property in another state." Grappo v. Coventry Fin. (1991) 235 Cal. App. 3d 496, 595-596.

There is a way out:

CA Supreme Court has held that individuals may change the community property or seperate property designation if there is an "express declaration" in writing by one or both spouses.

The critical factor is that there must be an instrument in writing containing "an express declaration that is made, joined in, consented to, or accepted by the spouse whose interest in the property is adversely affected. (Cal. Fam. Code 852)

[Joe Btfsplk]

Community property

One of the main distinctions is that property acquired during marriage is usually community property and propert held before marriage is separate property even in community property states. However this is just a general rule and laws may make exceptions in certain states.

If separate property is disposed of and reinvested during marriage, I believe it then becomes community property.

You really need a lawyer, not an accountant, to give you a definitive answer.