Do you own a house with someone and don’t want to register as domestic partners, but you still want an exclusion from a change in ownership for property tax purposes when you die? Now you can. Here’s how it works.
The IRS has just issued a significant private letter ruling affecting registered domestic partners in California — they must now each report half of their community earnings on their federal individual tax returns. As the SF Chronicle reports, the IRS’s decision reverses its earlier position requiring California’s registered domestic partners to each report on their own federal tax return only the income they personally earned, not one-half of their community income.