we have moved in with a family member and the house is being signed over to me, will I have to pay gift taxes if I don't sell the house?
2007-03-13 13:37:41 · 7 answers · asked by Angel Kisses 2504 3 in Business & Finance ➔ Taxes ➔ United States
Hello, Becka! According to the IRS (see the first two links), only the GIVER of cash or property may be subject to gift taxes (if the gift is over $12,000), so you (as the recipient) will not owe any taxes upon receipt of the home.
However, although you pay no tax in receiving the home, you should still be careful to note the following in your records:
1) the FMV of the home on the date of the gift
2) the giver's adjusted basis in the home (including any gift tax paid on the appreciation of the property)
You will need this information when you sell the home to determine how much (if any) of your gain is taxable. Please check out the latter IRS links for details. Good luck! :-)
2007-03-13 13:52:08 · answer #1 · answered by Anonymous · 3⤊ 0⤋
You won't pay any tax now. When you sell the house, your basis/cost would be the amount that was paid for the house by the person who gave it to you. If, however, you live in the house as your personal residence for 2 of the 5 yrs before selling it, you won't pay any tax unless the gain is $250,000 or more, ($500,000 for a married couple)
2007-03-13 21:26:10 · answer #2 · answered by irongrama 6 · 0⤊ 0⤋
Gift taxes, if applicable, are paid by the giver, not the receiver of the gift. Almost any house would be worth enough that the giver would be required to file a gift tax return, but they might or might not owe a gift tax, probably not.
2007-03-13 21:12:08 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Just like everyone has said so far, you will not have to pay gift taxes as the donee. The doner will, though. But remember that once the house is signed over to you and it is in your name, you will have to pay property taxes on it.
2007-03-14 09:43:30 · answer #4 · answered by Texas Girl 3 · 0⤊ 0⤋
No. Any gift taxes are the responsibility of the donor. The donor would need to file a gift tax return, or the estate will be responsible for any tax due, if any. A person can give lifetime gifts up to $1,000,000 tax free.
2007-03-13 20:43:11 · answer #5 · answered by tma 6 · 1⤊ 2⤋
i think if you pay her 1 dollar you can avoid the taxes better find out for sure each state is different otherwise you will pay welcome to america!
2007-03-13 20:49:34 · answer #6 · answered by dixie58 7 · 0⤊ 4⤋
yes,you will. unless you give it away or sell it. No matter if it was a gift or not.
2007-03-13 20:41:43 · answer #7 · answered by Sugar 7 · 0⤊ 5⤋