2007-11-28 11:06:34 · 8 answers · asked by T J 1 in Business & Finance ➔ Taxes ➔ United States
You probably will if the house is worth more than $20k. That is the limit of a tax free gift per year from any one person.
2007-11-28 11:10:23 · answer #1 · answered by Truth is elusive 7 · 0⤊ 6⤋
Are you giving anything (goods or services) in return for the house? If so, the value of the house received for goods or services is ordinary income to you.
Assuming this is a gift with nothing given in return, the tax will be due when you sell the house. The gain on the sale of the house is the difference of the selling price and the basis in the hands of the donor. Depending on what the house was used for before you received it, and whether you used the house as your personal residence, you may be able to exclude some of the gain.
If the house is not your personal residence, or the house was used as a rental before you received it, then you will owe some tax on the sale of the house, and possibly a giant amount.
2007-11-28 20:24:06 · answer #2 · answered by ninasgramma 7 · 3⤊ 0⤋
No, you only pay a giant tax when you purchase a giant. If you are given a house, the donor will have to file a gift tax return. There will be no tax due unless the donor has run through his lifetime exclusion.
2007-11-28 19:11:32 · answer #3 · answered by Anonymous · 3⤊ 1⤋
No, if you receive a gift you don't pay tax on the gift. The person giving it to you would have to file a gift tax return, but might or might not have to actually pay a gift tax.
2007-11-28 19:10:16 · answer #4 · answered by Judy 7 · 5⤊ 0⤋
I GIVING MY AUNT A HOUSE THAT WAS GIVING TO ME BY MY MOTHER. MY AUNT LIVES IN THAT HOUSE AND I WOULD LIKE TO GIVE IT AS A GIFT SINCE THIS SHE HAS NO OTHER HOME. WILL I HAVE TO PAY TAXES WHEN I GIVE HER THE HOUSE AS A GIFT
2014-07-19 15:43:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You don't owe tax on a gift you received, but you get their "tax basis". That means, for example, if your parents bought a house for $10,000 ages ago, and they gift it to you, and someday you sell it for $500,000, you will have a reportable gain of $490,000.
2007-11-29 20:00:18 · answer #6 · answered by r_kav 4 · 0⤊ 0⤋
Anytime you get something given to you, you must pay the taxes unless that is part of the deal, that taxes will be taken care of. House taxes, usually are paid in installments, so having a free house would probably be worth it, unless it is not worth owning.
2007-11-28 19:10:58 · answer #7 · answered by LIPPIE 7 · 0⤊ 5⤋
to get round the tax buy it for a dollar.
2007-11-28 19:14:00 · answer #8 · answered by wrathofkahn03 5 · 0⤊ 5⤋