Client asked what tax implications my be inherent if he and his wife gifted a home they own to their daughter during 2025.  While I don't have significant experience with this, I did investigate it a bit and ask that you confirm my understanding is correct:

- Home is above the $19,000 / $38,000 amount but well below the lifetime exclusion.

- Will need to complete Form 709 for the gift.

- No tax implications for my clients or their daughter at the time of the gift.

- Is the daughters basis the original cost of the home?  Tax implications are based on when / if the daughter sells the home. 

- Daughter does not anticipate applying for Medicaid so there should be no issue in that regard.  

- Client is not looking to sell the home, for any amount, to their child. 

Am I missing anything?  Any other insights that may be worth mentioning?  

Thank you.