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Warranty Deed transfer - Tax implications

Posted on: 30th Oct, 2010 10:13 am
My mother is wanting to do a Warranty Deed transfer on her condo in the state of Washington to me as I live in California as a gift, the property is paid in full with no balances owed. The property value is $232,000. What are my tax implications? Will I owe tax on the $232,000 as income?

Thank you,

Peter
Welcome pheines,

As your mother is transferring the property as a gift, she will be liable for paying the gift tax. However, there is a life time gift tax exemption of $1 million and she can take advantage of that. As the property is a gift to you, it won't be considered as your income.
Posted on: 31st Oct, 2010 10:43 pm
How does she take advantage of the one time life time gift tax exemption of $1 million. Is there any forms? Secondly, will I have to pay capital gains tax if I sold the property?

Thank you,
Posted on: 31st Oct, 2010 10:54 pm
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