Posted on: 15th Feb, 2009 11:24 am
I own a home in which my parent and sister lives in for the past 10 years. I now want to transfer/gift the home to my sister but would like to know the tax implications. Is there any tax exemption between siblings?
Hi ttod,
It's really nice of you that you want to transfer the home to your sister.
Well, doing that won't be difficult for you. You can do that through a quit claim deed.
As for the tax implications on quitclaim, if the property's worth not more than $12,000,which is annual gift limit per person, you need not pay any taxes. However, if the value crosses the annual gift tax limit, you can ask for a consideration of the excess amount of gift as part of the $1million lifetime gift tax limit.
Refer to the following link for a similar discussion:
http://www.mortgagefit.com/discuss/quitclaim-taximplications.html#3127
It's really nice of you that you want to transfer the home to your sister.
Well, doing that won't be difficult for you. You can do that through a quit claim deed.
As for the tax implications on quitclaim, if the property's worth not more than $12,000,which is annual gift limit per person, you need not pay any taxes. However, if the value crosses the annual gift tax limit, you can ask for a consideration of the excess amount of gift as part of the $1million lifetime gift tax limit.
Refer to the following link for a similar discussion:
http://www.mortgagefit.com/discuss/quitclaim-taximplications.html#3127