An agent can do many things, but tax advice is not one of them

Q: My wife and I are in our 80s and 70s respectively. We have a house in the Bay Area bought in 1991 for $225,000. Now its market value is approximately $1,045,000. If we sell our house, will we be paying high capital gains taxes? We want to put the money in a CD for two to three years, and then buy a home for us and eventually give it to our son who has a disability. Please advise. Thank you.

A: It’s understandable that a layperson might pose tax or estate planning questions to a real estate agent. Unfortunately, many licensees want to appear helpful and will provide answers. Such agents may be choosing to forget their initial real estate training that giving tax or legal advice is strictly prohibited. We are trained and licensed in the brokering of properties. Licensees are taught to say “I’m sorry, I’m not allowed to discuss legal or tax issues. Please seek tax or legal advice from the appropriate professional.” Somehow, some agents see that rehearsed response as shirking a duty to be helpful, making themselves look weak, or worse — inviting a potential “deal killer” to the party. All are amateur lines of thought. In all fairness, the client or the licensee might want to try to save time and money by avoiding sitting down with tax or legal professionals. I’ve always thought that inspections, repairs, enhancements, and disclosures are the sellers’ best friends, and frugality is their enemy. “Saving” hundreds of dollars upfront in informationgathering consultations could cost the sellers tens or hundreds of thousands of dollars in avoidable post-property-sale consequences. All the real estate, estate planning and elder law attorneys I’ve interviewed had clients with expensive problems created by advice-giving real estate agents. Search for the right lawyer in your county through the California Bar Association at www.calbar.org/lrs. For instance, an elder law attorney can help you with a special-needs trust for your adult son. Search for a CPA in the San Francisco or Silicon Valley chapters of the California Society of Certified Public Accountants. Make sure you talk to your lawyer and CPA first, then ideally, speak to a great real estate agent last.