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Gift Equity

Posted on: 22nd Nov, 2010 08:00 am
Hello,
I have been reading some of your information on Gift Equity. My daughter and son in law are wanting to buy my house which has been in my family for 4 generations. I no longer live there but I still own it. I am willing to let them buy it for probably 30,000 dollars less than the value in order to first help them get a house, second so I can get out from under this financially and thirdly the house will stay in the family. From what I have read they will not incur any tax liability and it sounds like I won't either is that correct? It seems like a great win win situation for us all! Please let me know if I am incorrect or what exactly needs to be done to make this happen
Thank you,
Peggy
Hi peggyswarts!

Welcome to forums!

The person receiving the gift of equity won't have to pay any taxes for it. However, the person who is giving the gift will have to pay gift taxes. However, there are certain exemptions in case of a gift taxes. You won't be liable for paying any gift taxes for $1 million as there is a lifetime exemption. To know more about gift of equity, check out the given page:
http://www.mortgagefit.com/predeal/giftequity.html

Feel free to ask if you've further queries.

Sussane
Posted on: 22nd Nov, 2010 09:17 pm
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