Accepted Answer

Since the property was gifted to you in June - and the gift was complete you do not have to reverse the gift.

The gift given to you will be included in the estate tax return and if she dies in Sept 2009 than it will nto affect the estate taxes as the estate under $3.5 mn is not subject to tax for 2009.

Since you received the property as gift- for you the basis in the property is the cost basis for your Mom. You will not have to worry about the tax implications until you sell the property. Gift recipient is not subject to tax on the gift received by him.

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

Expert:	RD
Pos. Feedback:	99.4 %
Accepts:
Answered:	10/22/2009

Certified Public Accountant (CPA)

CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..