My mom is giving me her house, building, land, and etc. what is the best way to not pay as much tax once I get

Answer 1

If you mother has assets less than $1 million (approximately), then there will be no taxes owed by her or her estate due to the gift of the property. You as the recipient will not pay tax upon receipt of the property.

A tax may be due when you sell the property, since the value of the property to you is your mother's cost of the property. If the property has increased in value since your mother acquired it, when you sell it you may pay tax on the gains.

To avoid this tax, your mother could give you the use of the property through her lifetime, and then you own the property when she dies. An attorney can prepare the papers to do this.

Your attorney could also advise you ways to have her gift the property to you over time to minimize taxes.

Answer 2

The 2 ways to minimize the total tax bite involve her NOT giving you the home, etc. at this time.

If she gives it to you now, the total gift tax exclusion of $1,012,000 ($12k annual + $1,000,000 lifetime) would apply. If she leaves it to you in her will, the estate tax exclusion, currently $2,000,000, would apply.

Worse yet, if she gives it to you, you would receive her pass-through basis on the property. If you receive it through a bequest when she passes, you get the stepped up basis on the date of her death. Depending upon how much the property has appreciated over the years, the tax consequences could be staggering.

The best way for her to transfer the property to you would be either leave it to you in her will or set up a trust with you as a beneficiary.

The benefit of a trust would be simplification of the probate process and possibly some protections for her during her lifetime though it won't save any tax. If you are the sole beneficiary of her estate it may not be worth the expense.

Answer 3

Have her not give to you at all but establish a family trust that names you beneficiary when she dies that way you will get the property with a stepped up basis (cost for tax purposes) of what it is worth then instead of her cost from long ago. Money spent for an attorney to do it right will be money well spent.

Answer 4

Your mother is allowed to gift you property every year. The initial gift is a larger amount and then it decreases to a constant amount each year. It will not be taxable if given I think 2 years prior to her death. I don't remember the exact numbers but for example if her property is worth $150,000, I think she can gift you $20,000 in year one and up to $3,000 each year after that. Also keep in mind not all estates are subject to estate tax, if the estate isn't that large, you won't pay taxes on it anyway. My numbers are just off the top of my head and what I remember. Look them up on the irs.gov site under estate taxes.

Answer 5

Home improvements and or Home repairs, you can write it off at tax time. Keep all of your reciepts.
If you qualify get a home equity loan and use that money for the home improvements and write everything off at tax time.
Say no to Adjustable rates (ARM) and big no to Interest Only loans (I/O).
Just get a fixed rate with either a closed end or revolving line of credit.
FYI: Revolving line of credit is great as long as you make your payments on time and you be sure to convert this loan into a closed end loan before 2O years.
You can recycle your money with a revolving line of credit. Closed end means you just pay it off and that it.
Call your local HFC or Beneficial Branch for a no obligation application to see if you qualify. No appraisal required for an equity loan. No out of pocket expense.

Answer 6

The laws vary from state to state. You really need to talk to a CPA who specializes in real estate within your state or a lawyer who specializes in taxes or real estate issues.

Answer 7

Have her put your name on the deed while she still owns it. She can then sell it to you for 1.00. You pay the transfer tax on one buck.