Posted on: 20th Jul, 2009 07:50 pm
Is there any legal way my Dad can transfer ownership of an $80,000 residential lot to my wife and I without incurring the 45% federal gift tax? Would we then be able use this lot as equity to build a house on the lot?
Do we have any other options? (We can't afford both to buy a lot and build a house due to the giant 25% down payment required.)
Thanks!
Do we have any other options? (We can't afford both to buy a lot and build a house due to the giant 25% down payment required.)
Thanks!
Hi fattyankles,
When your dad transfers the property to you and your wife as a gift, he needs to pay gift tax. However, there are certain gift tax exemptions available, which your dad can claim. There is an annual gift tax exemption and a lifetime gift tax exemption. In case the gift is within the exemption limit, your dad will not have to pay the gift tax.
When your dad transfers the property to you and your wife as a gift, he needs to pay gift tax. However, there are certain gift tax exemptions available, which your dad can claim. There is an annual gift tax exemption and a lifetime gift tax exemption. In case the gift is within the exemption limit, your dad will not have to pay the gift tax.