OK, my parents house was in foreclosure, so I bought it and got a mortgage on it. After a year and a half, they bought it back from me. Part of my sale to them was a "gift of equity" of about $48,000, so that they could obtain a mortgage. Do I need to report this "gift of equity", and if so how? From what I've read, it appears I need to file a gift tax return, but (since this is my first gift, I'm well under the $2,000,000 lifetime limit) I won't need to pay any tax on this. Am I correct in my understanding of this?
2007-03-19
02:21:52
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3 answers
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asked by
Charlie Brown
1
in
Business & Finance
➔ Taxes
➔ United States
Thanks for responses to far! A couple of details for clarification:
1) The house was sold in March, at which time I was single. I was married later that year. Can I split the gift between me and my wife?
2) Technically, only my Mom bought the house, so am I still able to claim part of the gift went to my Dad?
3) Exactly what affect does any of this have on estate taxes (this is the first I've heard of this)?
2007-03-19
02:55:42 ·
update #1