- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Parent selling property to daughter, who is married with 2 children. Property assessed at $325,000 selling at $325,000 (equity)gifting $60,000 ($15,000 for each)= $265,000
is there any taxable amount from gifting to either parent or child?
(Parent owns house outright and has lived in the house - with children- for at least 2 of the previous 5 years)
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Married with two children (and a spouse?) = 4 people? each is gifted $15.000. The gift exemption for 2020 is $15,000 so as long as you don't give any of them a Christmas or birthday gift, there would be no gift tax due.
Answers are easy. Questions are hard!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
How old are the kids? All four names are on the deed?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Daughter will be the only 1 on the deed
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Sorry. I know the gift tax for 2020 is $15,000
The "Equity" Gift tax is different.
I know with the Equity Gifting you can give whatever you want. I also know if it's above the limit (In this case $15,000- since the daughter will be the only 1 on the deed)
I also know there is a lifetime $5.43 Million in gifting so a Form 709 would have to be filed
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You have part gift and part sale. Gift is all to the daughter since only daughter will own the home. Parent needs to file a gift tax return to report the gift. If parent's gain is over $50K, the excess will be taxable.
The more I know the more I don’t know.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You're a little behind on the current lifetime estate and gift tax exemption amount.
The more I know the more I don’t know.
