What are the tax ramifications to giving my daughter $'s to build her a house? I could put it in both of our n

Question

If I put it in both our names and I die, wouldn't she be able to keep the house.

Answer 1

Gift tax max's out at 13,000 for 2007. anything over that amount would be subject to tax. There is a personal lifetime gift credit up to 2 million where you can defer the tax as long as the lifetime amount does not exceed that amount.

You are better off purchasing the cost yourself, so that you may take advantage of the tax deductions. Then make sure to write out a will that gives the property in whole to your daughter. This way she gets a roof, and you get tax relief without having to use your gift credit.

Answer 2

Maybe. If you and she were joint tenants with right of survivorship it would go the the first one of you that didn't die. If you got it now, your tax basis would be the purchase price, half yours, half your daughters. You would have to file a gift tax return but would probably not owe any tax. When one of you dies, the tax basis of half the property is stepped up to the value on the date of death.

Answer 3

Wow! With the gift tax topping out at 10,000.00 anything over that might be taxable income.

I'd see a tax accountant or an attorney on this one. It might cost you some $$$, but you certainly don't want to see this blow up in your face.
Your daughter has a very generous father, I also hope she has a very prudent father.