No you wold not ... the only way would be if you give over the lifetime maximum of $5,250,00 already
have given... I should say
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
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)
it's 14,000 now (It's just been indexed for inflation .. it actually - showing my age here - started out at 10,000)
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)
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
"gifts" accumulated lifetime "gifts" (sorry for the typos)
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?
You have it, exactly
Thanks You are a Godsend and have been very clear and helpful.
Thank you so much
Yes, you'll be fine .. this is not all that uncommon
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
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.
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
Thank you. I have identified the problem, the power was out last night and the printer is not on.
ahhh that'll do it!
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,