This may be more than I can comprehend I will cancel this advise
Ok, let me try to make it a little simpler. When you gave daughter the house but kept a life estate, the gift of the house was worth some amount. Under the IRS tax laws, the person who makes a gift has to pay taxes on any gift over the annual amount that is exempt. In 2007, that annual exclusion was $12,000. . So for simplicy's sake, lets say the house was worth $100,000. And the life estate (the right to live there for the rest of your life) is worth $15,000. That means that you gave daughter a gift worth $85,000. Deducting the $12,000 annual exemption, that means that $73,000 of the gift is taxable. . However, a person has a "lifetime gift tax exemption" of a certain amount that they can use up over their lifetime to avoid paying gift taxes. In 2007, that amount was $1 million. So you could have filed a form called a 709 Gift Tax Return and use up $73,000 of that $2 million to avoid paying any gift taxes on the gift. . However, there is a 3 year limit on filing an amended return so you would need to contact a CPA or tax attorney and see if they could contact the IRS and negotiate a reduced amount of tax on the gift. . . Thanks Barrister
We are talking about a house that is worth about 150.000 What will we have to pay in taxes in NJ, we are on SSB. there is no room for any kind of taxes,,should we just walk away like many other people are doing? A Korean vet, a couple that has paid every tax bill and worked all of their lives to be treated like we don't care. We have paid more attorney fees then you could every comprehend.
Thanks so much for the positive rating and generous bonus, it is very much appreciated!
It was my pleasure to work with you and help with your question. Please feel free to ask for me if you need help with anything in the future and I will do my level best to help or get you to someone who can.
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