Posted on: 30th Nov, 2007 12:49 pm
My parents quit claim their house to my sister and I 4 years ago when my dad was feeling ill. My parents unknowingly never filed a gift tax and my dad passed away 2 years ago. My sister and I would like to file a quit claim back to my mother without causing tax implications. Do we still need to file a gift tax since we are basically giving the rights to the property back to my mom as it was originally?
Hi Andrew,
I think you have to file a gift tax if the value of the property exceeds the annual exemption limit of $12,000 per person. Even if this exceeds, no tax will be due if it is not more than your total lifetime gifts exemption of $ 1 million.
I think you have to file a gift tax if the value of the property exceeds the annual exemption limit of $12,000 per person. Even if this exceeds, no tax will be due if it is not more than your total lifetime gifts exemption of $ 1 million.
Hi Andrew,
Welcome to this forum.
I agree with Rosetta here. You will have to pay gift tax only if you cross that$ 1 million mark. If you give gift away more than cumulative of $1 million, then you have to pay tan on it. And the fact is that very few people reach that point to give tax.
Thanks,
Larry
Welcome to this forum.
I agree with Rosetta here. You will have to pay gift tax only if you cross that$ 1 million mark. If you give gift away more than cumulative of $1 million, then you have to pay tan on it. And the fact is that very few people reach that point to give tax.
Thanks,
Larry