Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thanks you for using Just Answer. The transfer of the home to you would be a gift from your father to your. Your father would file a gift tax return, (Form 709, www.irs.gov/pub/irs-pdf/f709.pdf, ) if the home is worth over $12,000. Although tax is calculated on the return, no tax is due until your father exhausts the $1 million exclusion. You are not require to report the gift on your tax return. The transfer is nontaxable transfer to you. You basis in the home will be the same as your father and if you sell the home any amounts you receive over the basis will be tax at the long-term capital gain rate to you.
This apply to federal. Oregon does not have a gift tax on gift.