Can the IRS seize a property from me if it is co-owned by a sibling?

Asked over 1 year ago - Austin, TX

I own half/50% of a condo -- currently being rented out -- with my brother. If the IRS decides to levy my properties and assets, can they be completely seized if they are co-owned by a non-spouse?

Attorney answers (3)

  1. Bobby Dale Barina

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    Contributor Level 14

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    Answered . You should meet with a tax attorney as soon as you can. The innocent person would need to file an innocent owner claim if the IRS acted against the property. The innocent person should seek legal counsel as well.

    Bobby Barina's answer to a legal question on Avvo does not establish an attorney-client relationship. Mr. Barina... more
  2. Clayton Harold Walker Jr.

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    Contributor Level 13

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    Answered . The IRS manual states:

    Serve a levy only when there is reason to believe the third party is holding the taxpayer's property.

    If the taxpayer owns property with a person not liable for the tax, consider using another source.

    Any property in which the taxpayer has an interest is subject to levy, even if the property is jointly owned with another person (e.g., community property, jointly owned bank accounts). However, because wrongful levy suits and claims can result from such levies, consider levying on another available source.

    If you find an answer helpful please mark it as such or as the Best Answer. You have asked us to state an opinion... more
  3. E. Martin Davidoff

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    Contributor Level 15

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    Answered . It is rare that the IRS will seize real estate. You really need to be totally ignoring them and owe a lot of money (at least $100,000). But, in those rare cases, they would not take your co-owner's equity. They cannot. So, if they attempted to seize the real estate and sell it, they would only be entitled to your 50%.

    What you should do is get some professional advice on how to deal with your IRS problem.

    Marty Davidoff, emd@taxattorneycpa.com, 732-274-1600. This answer is provided for general information only. You... more

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