How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 3988
Experience:  Providing Financial, Tax & Business advice since 1986
1929974
Type Your Finance Question Here...
Lane is online now
A new question is answered every 9 seconds

Would I, or my son, need to pay any Federal tax if I gave

Resolved Question:

Would I, or my son, need to pay any Federal tax if I gave my house to my 32 year old son now? I live in PA and understand neither of us needs to pay any state taxes on such a gift.
Submitted: 10 months ago.
Category: Finance
Expert:  Lane replied 10 months ago.

Lane :

Hi,

Lane :

No you wold not ... the only way would be if you give over the lifetime maximum of $5,250,00 already

Lane :

have given... I should say

Lane :

For gifts of over $14,000 to any one person, you do need to complete a gift tax form form 709: Form 709 ... but this is just to track against that $5,250,000 exclusion

Customer:

I thought you could only give a gift valued at $13000 per year. Am I confusing apples and oranges? Or is a gift of a house different? i want to make sure I do not give him the house and then get socked with a humungous tax bill at the end of the year, (We both still live in the house)

Lane :

it's 14,000 now (It's just been indexed for inflation .. it actually - showing my age here - started out at 10,000)

Lane :

And again, the exemption has been indexed too (started at $5,000,000 and is now at $5,250,000) and this one will continue to go up EVERY year (fiscal cliff deal, tax act, made it permanent)

Lane :

so you only file the 709 so they can keep up with lifetime give ... doesn't actually become taxable until the total hits that $5,250,000

Lane :

"gifts" accumulated lifetime "gifts" (sorry for the typos)

Customer:

So, just to make sure I understand. The botXXXXX XXXXXne is that I can give my son my house (valued at VERY well under $5,250,00)and neither he nor I will have to pay federal taxes on the gift...but I will have to file a Form 709?

Lane :

You have it, exactly

Customer:

Thanks You are a Godsend and have been very clear and helpful.

Lane :

Thank you so much

Lane :

Yes, you'll be fine .. this is not all that uncommon

Lane :

If this has helped, I would appreciate a feedback rating of 3 (ok) or better (excellent, is ideal)… That's the only way I'll get credit for the work.


However, if you need more on this, please come back here, so you won't be charged for another question

Customer:

i am trying to printout this conversation for future reference but can't get it to work - that is why I am lingering at the site. I will surely give you a good rating.

Lane :

no problems at all .. just do a file, print from your browser OR you can simply bookmark (save as a favorite place) OR you can copy and paste this link http://www.justanswer.com/finance/83mqc-i-son-need-pay-federal-tax-gave.html into a word document and come back for reference

Customer:

Thank you. I have identified the problem, the power was out last night and the printer is not on.

Lane :

ahhh that'll do it!

Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 3988
Experience: Providing Financial, Tax & Business advice since 1986
Lane and 3 other Finance Specialists are ready to help you
Expert:  Lane replied 10 months ago.

 

Hi Idamarie!

 

 

Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.

 

Let me know,

Lane

 

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1890
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    1755
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    838
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    397
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    324
    NASD Licensed Rep, 1997-2001, Business Attorney