|
Program |
Manual Section |
|
ALTCS FTW - ALTCS |
When determining the uncompensated value of a transfer due to creating joint ownership, prorate the value of the asset by the number of people now owning the resource.
NOTE Prorate ownership equally among the owners unless the title or transfer document specifically gives owners unequal shares.
Example 1: The customer transfers sole ownership by adding the names of three individuals to the title with the designation of “and”. The customer’s share of the resource is ¼ of the equity value and ¾ is the transferred amount.
Example 2: The customer deeds a 20% interest in a piece of real property to his brother. The customer’s share is 80%, and the brother’s is 20%.