Posted on: 06th Jan, 2009 01:38 pm
My father and I bought a house together about 8 years ago. The deed was split 50/50, but I am the only person that ever made payments on the house. He was only on the loan. About a year ago I refinanced under only my name and then as a wedding gift, he did a quitclaim deed into my name. The house has appreciated quite a bit. Now the house is in my name as well as my husbands. Are we going ot have to pay a huge tax due the that half of the deed being gifted to me?
Thank you!
Jayme
Thank you!
Jayme
Hi jayme!
Welcome to forums!
As half of the property was deeded to you as a gift, there are chances that your father will have to pay a gift tax. However, you should note that there are certain exemptions as well while paying the gift tax. Gift transfers worth $12,000 per person in a year are not subject to gift tax. Thus, an individual can make gifts up to this amount to as many people as he/she wishes to in a year. Apart from this, there is a lifetime gifting limit of $1,000,000 before a gift tax is incurred.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
As half of the property was deeded to you as a gift, there are chances that your father will have to pay a gift tax. However, you should note that there are certain exemptions as well while paying the gift tax. Gift transfers worth $12,000 per person in a year are not subject to gift tax. Thus, an individual can make gifts up to this amount to as many people as he/she wishes to in a year. Apart from this, there is a lifetime gifting limit of $1,000,000 before a gift tax is incurred.
Feel free to ask if you have further queries.
Sussane