Posted on: 25th Oct, 2010 11:19 am
We bought 15 acres of farm ground in 2005, my daughter and her fiance paid the mortgage until two acres were paid for, they are going to build a house in 2011 on this two acres they paid for. We retained ownership on this property for tax reasons and farming reasons but now we want to transfer this property to them/her. Can we gift this property to her? The property is worth more then the $13,000 gift tax limit but can my husband and I both use our $13,000 limit? This would be within the price range as the property also has some improvements made to it. If they have ownership can they use that price when applying for a mortgage for building their home?
Hi carolsgarden!
Welcome to forums!
You can use a gift deed and transfer the property to her. Both of you can use your gift tax exemption limits in order to avoid paying gift taxes. When your daughter and her fiancé takes out a mortgage, they will have to go with the value of the property at that point of time.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can use a gift deed and transfer the property to her. Both of you can use your gift tax exemption limits in order to avoid paying gift taxes. When your daughter and her fiancé takes out a mortgage, they will have to go with the value of the property at that point of time.
Feel free to ask if you've further queries.
Sussane