Accepted Answer

Hello,

Thanks for your question. Since it is legally considered your property now, if you gave your brother $200,000 after the sale of the property, this would be considered a gift. A gift is not taxable to the receiver of the gift but it is taxable to the donor.

You can give up to $13,000 per year tax free to an individual (this figure may be adjusted in future years by Congress). Otherwise, you would have to pay gift tax on Form 709.

For more information see
http://www.irs.gov/businesses/small/article/0,,id=164872,00.html

Have you considered just having your mother (if she is not dec'd) revising the deed/title? If you don't know how, you might want to seek a lawyer or ask a legal question about revising the deed so that both you and your brother will own the property.

Hope this helps!
Sincerely,

Edited by JK_CPA on 10/21/2009 at 7:52 PM

Expert:	JK_CPA
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Accepts:
Answered:	10/21/2009

Certified Public Accountant (CPA)

with 5 years accounting experience and 18 years tax experience.