XXXXXXX,
The maximum you can gift is $13K per a year to your son without the need for filing a gift tax return, so you could spread out your gift over several years. You can also gift it all at once and claim part of your $1MM lifetime gift exclusion by filing Form 709 (Gift tax return) to avoid gift taxes. Please let me know if you have further questions.
Regards,
Mark D
No problem! The $1 million lifetime exclusion allows you to gift in excess of the $13K per a year per an individual without having to pay up to 45% in gift taxes. To claim this exclusion, you would file a gift tax return (Form 709). For example, you could gift the entire $60K worth on land and still have $940K of your lifetime exclusion left. By gifting only 13 acres of the land (valued at $1K apiece) per a year, you would not have to file any gift tax return or use up any of your exclusion. As long as you have never used up your $1MM lifetime exclusion, you would not pay any taxes on this gift either way. Please let me know if this did not clear things up for you.
Don,
Correct, you would not need to worry about paying gift taxes, but you would still need to file Form 709.
Enrolled Agent
MBA, EA, Specializing in Business and Individual Tax Returns and Issues