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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 53694
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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In New York State: This is more of a TAX question then Real

Customer Question

In New York State:
This is more of a TAX question then Real just want to be I "think: it can fit both...
I have a friend who does not have a good relationship with her dad:
Dad sold his condo on 7/5/16...and he wants to give $50,000 of that to his daughter....
what can she do to not have to pay taxes on that money? there anything the dad has to or can do to make this transaction as simple as possible?
My friends dad lives with his son and daughter n law and my friend feels that the daughter n law will take advantage of the money asap...
so looking for advice and some answers...
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  Richard replied 3 months ago.

Hi there. My name is ***** ***** I look forward to helping you.

This will not cause any tax to the daughter. Since this is a gift, under Section 102 of the Code, this is then not income and not subject to income tax. And, there should be no gift tax consequences. Recipients of gifts are not subject to gift tax. And, there should also be no gift tax due from the donor. Each donor can give $14,000 per year per person under the annual gift exclusion. In addition to that, for any amounts in excess of the $14,000 in a year, each person has a $5,450,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,450,000 in gifts over and above the $14,000 annual gift exclusion amount without incurring gift tax....the donor must file a gift tax return to let the IRS know how much of the lifetime exemption is being used, but there will be no gift tax until cumulative additional gifts have exceeded the $5,450,000.

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