Posted on: 10th Sep, 2007 02:49 am
My wife wanna to transfer her property to my father (i.e. her Father-in-law) as a gift. What will be the impact of gift tax and income tax. [/u]
Hi Guest,
Welcome to the forum.
If your wife transfer the property to her father by a quitclaim deed, then it may be considered as gift to him. And if the value of the transferred property is more than $12,000, then she may have to pay for the gift tax. To know more on gift tax, you may refer to http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
Welcome to the forum.
If your wife transfer the property to her father by a quitclaim deed, then it may be considered as gift to him. And if the value of the transferred property is more than $12,000, then she may have to pay for the gift tax. To know more on gift tax, you may refer to http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
Apart from gift taxes, after becoming owner of property paying property taxes will also become your father's responsibility.
Regarding gift taxes, even if the annual gift tax exemption limit is crossed, a person is not required to pay any tax if the lifetime gift tax exemption limit is not crossed, which stands at $1 million.
Miller
Regarding gift taxes, even if the annual gift tax exemption limit is crossed, a person is not required to pay any tax if the lifetime gift tax exemption limit is not crossed, which stands at $1 million.
Miller
Hi,
I do not have much idea about gift tax. So if anyone can explain it, it will be a great help for me.
Thanks in advance :)
I do not have much idea about gift tax. So if anyone can explain it, it will be a great help for me.
Thanks in advance :)
Hi Jonny,
Welcome to forums.
The gift tax is a certain amount of tax which you may have to pay when you transfer a part or the entire property to someone else.
When you sign over a quitclaim deed to someone in return of transfer of money less than the property value or without monetary consideration then the transfer is known as gift. And, you will have to pay taxes on the gift only when its value is worth more than $12000 (for 2007).
There is another exemption limit for gift taxes. To know more about it, refer to a previous discussion on Gift tax exemption.
Thanks
Welcome to forums.
The gift tax is a certain amount of tax which you may have to pay when you transfer a part or the entire property to someone else.
When you sign over a quitclaim deed to someone in return of transfer of money less than the property value or without monetary consideration then the transfer is known as gift. And, you will have to pay taxes on the gift only when its value is worth more than $12000 (for 2007).
There is another exemption limit for gift taxes. To know more about it, refer to a previous discussion on Gift tax exemption.
Thanks