Posted on: 13th Oct, 2009 09:05 am
I understand theat if I quitclaim a house that I purchase to my daughter, I can avoid gift tax implications under the $1,000,000 liftime exemption if I have not used it - correct? My next question is how can I get the $8000 federal credit to my daughter on the house? She can prove she owns it but did not pay $80,000 for it. Any idea's. I can put $80,000 on the quitclaim even though she doesn't pay it.
You can use the lifetime exemptions for gift taxes if you haven't used it. If you transfer the property to your daughter, then she will not be able to claim the tax credit. Property purchased from ancestors (parents, grandparents, etc) does not qualify for the first time homebuyer's tax credit.