Property deeds are not just pieces of paper – they hold the power to impact your fiscal situation considerably. Property deeds are legal documents that provide proof of ownership. When you extend ownership rights by adding someone to your property deed, there are tax implications and potential risks associated with the transaction. A person may be added to a property deed as a result of inheritance, marriage or partnership. It's crucial to understand that adding someone to a deed typically involves a transfer of ownership interest in the property. With that transfer comes potential tax consequences.