Posted on: 16th Jun, 2010 08:32 am
I am purchasing a home from my parents (I originally owned it, but was transferred with my job and sold it to them 13 years ago). When they bought it the deed was put only in my mother's name (my father thinks he will die first and therefore wanted it to be clear title in her name for simplicity).
We had an agreement that when I purchased the home back from them I would by it at the same price, $85,000. It appraised fro $124,000. I had planned on using the maximum amount of $13,000 from both of them to have a total gift of equity of $26,000. I did not want the transaction to enter into more than the current year. Can my father gift $13,000 even though he was not on the deed?
Thanks
Mildred
We had an agreement that when I purchased the home back from them I would by it at the same price, $85,000. It appraised fro $124,000. I had planned on using the maximum amount of $13,000 from both of them to have a total gift of equity of $26,000. I did not want the transaction to enter into more than the current year. Can my father gift $13,000 even though he was not on the deed?
Thanks
Mildred
Welcome Mildred,
Your father's name is not on the property deed. Thus, he has no rights over the property and won't be able to transfer it to you. It is your mother who will be liable for the gift taxes once she transfers the property to you.
Your father's name is not on the property deed. Thus, he has no rights over the property and won't be able to transfer it to you. It is your mother who will be liable for the gift taxes once she transfers the property to you.