I have asked my parents to deed me some of their land so that I may build behind their house. What are the laws and taxes surrounding this? Will my parents have to pay taxes, or will I? Can it be done even though they are still alive?
2007-06-19 03:33:22 · 4 answers · asked by seevie8 2 in Business & Finance ➔ Renting & Real Estate
They could "quitclaim" (not "quick claim") it to you. However, there could be Gift Tax consequences for them depending upon the value of the land. There's a $12,000 exemption per donor, per recipient, per year. Above that there's also a lifetime exclusion of currently $1 million. The lifetime exclusion reduces the Estate Tax exclusion so there can be consequences there as well when they pass on.
As to the property taxes, any bills coming due after the transfer date become your responsibility.
They could also lease you the land for $1 per year and leave it to you in their wills. They would be responsible for property taxes in that case and you could not take the itemized deduction for it either even if you paid the taxes, but it's another option.
2007-06-19 03:55:46 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
taxes are bore by the vested owner of the prop.
a quitclaim or grant deed will suffice if you want to gain ownership.
there are no special county taxes or increases in taxes when changing ownership from parent to child.
2007-06-19 11:15:08 · answer #2 · answered by ticketoride04 5 · 0⤊ 0⤋
they can make a quick claim deed
who pays taxes? thats an agreement between you and your parents
I own 2 lots on a lake with a quick claim deed from my parent/s
taxes are paid for me ( agreed upon)
2007-06-19 10:42:24 · answer #3 · answered by Mopar Muscle Gal 7 · 0⤊ 1⤋
You will get complete information related to your question(Tax related) in the following site. Trust me, its good..
http://www.legaltarget.com/tax_law.htm
2007-06-20 08:18:08 · answer #4 · answered by Anonymous · 0⤊ 1⤋