Posted on: 18th Dec, 2008 10:26pm
Gifting property to family members is a quite simple process. You have to be well aware of the income tax implications of this property transfer.
Here are 3 tips that you need to follow while gifting property to family members.
First of all, you need to hire a real estate professional to estimate the value of your property that you want to gift. Once you are aware of the value of your property, you can face any questions asked by the Internal Revenue Service (IRS) more confidently.
As per the rule by IRS, there is a yearly gift exclusion of the amount $13000 per person in the property transfer deal. If you and your wife transfer property as a gift to your two sons and one daughter, then the total annual exclusion amount is $65000. This is because five persons are involved in the transaction. In this case, for up to $65,000 worth of property transfer, you won’t have to pay taxes.
Here are 3 tips that you need to follow while gifting property to family members.
1. Get correct property estimate:
First of all, you need to hire a real estate professional to estimate the value of your property that you want to gift. Once you are aware of the value of your property, you can face any questions asked by the Internal Revenue Service (IRS) more confidently.
2. Be aware of IRS rules on property transfer:
As per the rule by IRS, there is a yearly gift exclusion of the amount $13000 per person in the property transfer deal. If you and your wife transfer property as a gift to your two sons and one daughter, then the total annual exclusion amount is $65000. This is because five persons are involved in the transaction. In this case, for up to $65,000 worth of property transfer, you won’t have to pay taxes.
3. Make it a legal affair:
In order to make your property transfer a legal matter, you need to generate a deed. The deed must include the description of the property, your signature and the signatures of the recipients.
i want to give a property to my family as gift ( son,wife,brother ) what is the policy if i don' t want to pay tax,and i f i have to pay what is going to be.I purchased this unit for $270,000+gst and now in this market nobody buying it,last year price was 400,000.this property bought for investment and was rented out for two years.my email
"peaceandfreedom55@hotmail.com"
[Link deactivated as per forum rules. Thanks.]
"peaceandfreedom55@hotmail.com"
[Link deactivated as per forum rules. Thanks.]
Hi Jonnywebbhead!
Welcome to forums!
Yes this can be done. Both of you need to sign the warranty deed or a quitclaim deed in order to transfer the property. You can even contact a real estate attorney and take his help in transferring/gifting the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Yes this can be done. Both of you need to sign the warranty deed or a quitclaim deed in order to transfer the property. You can even contact a real estate attorney and take his help in transferring/gifting the property.
Feel free to ask if you've further queries.
Sussane
Hello, I gave my married son a POA; he gifted my Sole Propietor Real Estate business into an LLC under his name while I was really ill with Depression due to my husband passing. Now, I am on the road again; and I want my business back. I cry everyday because I am afraid of the tax implications if I take over the LLC's ownership. I do not know what to do. Please, hel!!! Shelly Queens
Hi Shelly,
Well, the tax implications of an LLC differ from those of corporations. LLCs use "pass-through taxation," as they don't pay taxes. The income of the business will pass on to the owners who are called members in LLCs. They claim the profits or losses on their personal tax forms.
Well, the tax implications of an LLC differ from those of corporations. LLCs use "pass-through taxation," as they don't pay taxes. The income of the business will pass on to the owners who are called members in LLCs. They claim the profits or losses on their personal tax forms.
Donate a truck worth less than 10k to my Son in La.
and avoid he, or I from having to pay sales tax
I understand the Notzrty will have chrges, but otherwise?
and avoid he, or I from having to pay sales tax
I understand the Notzrty will have chrges, but otherwise?
Hi jJJR,
You have gifted the property to your son. Thus, you will be liable for paying gift taxes. However, there is an exemption limit. If you are within that exemption limit, then you will be liable for paying the gift tax.
You have gifted the property to your son. Thus, you will be liable for paying gift taxes. However, there is an exemption limit. If you are within that exemption limit, then you will be liable for paying the gift tax.
gift a property to my married sisters son wo is dead
Hi deek!
Welcome to the forums!
If a person is already deceased, then you cannot transfer property in his or her name.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
If a person is already deceased, then you cannot transfer property in his or her name.
Feel free to ask if you've further queries.
Sussane
what forms do I have to fill out for no transfer taxes?
Thank you for your time and assistant.
Thank you for your time and assistant.
Hi Shu,
You should contact a real estate attorney and he will help you in knowing the type of forms you will have to fill out for no transfer taxes.
Thanks
You should contact a real estate attorney and he will help you in knowing the type of forms you will have to fill out for no transfer taxes.
Thanks
I want to pass the ownership to my 17 year old son .
What ie the best way to do so to avoid taxes ?
The value of the condo is now some 35,000 $
What ie the best way to do so to avoid taxes ?
The value of the condo is now some 35,000 $
Hi VAL,
You will not be able to pass your property to a minor child. Your son has to be 18 years old in order to own a house/condo. Once he becomes an adult, you can speak to a tax adviser and take his opinion in order to avoid taxes while transferring property.
You will not be able to pass your property to a minor child. Your son has to be 18 years old in order to own a house/condo. Once he becomes an adult, you can speak to a tax adviser and take his opinion in order to avoid taxes while transferring property.
My mother has 7 acres that she would like to gift to my husband and I. We live in Missouri. Will either my mother or I have to pay taxes on the gift? The value of the land is $12,000.