Posted on: 07th Aug, 2010 12:40 pm
We have 40 acres of land and we have four kids That we would like to quit claim to our children in the form of a gift. If we quit claim this land to our four kids, will they have to report this on their income taxes. It is my understand we can gift $10,000 per person per year. Can part of the worth of this gift be carried over to another year?
Hi PMHodel,
The annual exemption regarding gift taxes is $13,000. You can transfer property worth $13,000 to your heirs as gift and you won't have to pay any taxes. As far as including the property in the income tax of your kids is concerned, you need to contact a tax adviser in this regard.
The annual exemption regarding gift taxes is $13,000. You can transfer property worth $13,000 to your heirs as gift and you won't have to pay any taxes. As far as including the property in the income tax of your kids is concerned, you need to contact a tax adviser in this regard.