Real Estate Law
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They can IF the value of the home does not exceed the gift tax exemption which is $13KSo, example, say that the home is worth $10K ($100K market value and $90K loan)? Since that is less than $13K there is no tax due.
Or, say its worth $20K ($300K market value and $280K loan)? If he is giving it to a couple, then he can deduct $13K x 2 for up to $26KBut if the home is worth more than $26K (the difference between the loan and market value)? He will owe a tax on the difference.Say its worth $50K...he would owe tax on $24K ($50K - $26K) to the IRS
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Please rate the answer so I may receive creditThanks for your understandingPhil