How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark D Your Own Question
Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1249
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
Type Your Tax Question Here...
Mark D is online now
A new question is answered every 9 seconds

If someone was to give a house as a gift, what would the tax

Resolved Question:

If someone was to give a house as a gift, what would the tax consequences be for both the giver and the recipient?
Submitted: 7 years ago.
Category: Tax
Expert:  Mark D replied 7 years ago.



For 2009, gifts over $13K are subject to gift tax and must be reported on IRS Form 709. However, every taxpayer has a $1MM lifetime gift exclusion, meaning they can gift excess amounts up to $1MM during the course of their lifetime and not have to pay any gift taxes. They claim this exemption on said Form 709. The giftor is always the one subject to gift tax and the giftee has no reporting requirements or tax consequences. Some taxpayers take advantage of gift splitting (advantageous to married couples) and straddled gifts over several years, such as gifting $13K worth of a home each year. The maximum gift tax rate for 2009 is 45%. Please let me know if you have further questions.




Mark D

Mark D and 2 other Tax Specialists are ready to help you
Customer: replied 7 years ago.

So, am I reading this right that the recipient would be responsible for the gift tax, which would be what? (A ballpark figure is fine- the value of the house is about 350k) Is that the 45% you mentioned? And, (sorry for my ignorance) does that mean they would pay 45% in taxes on the value of the house?

Thanks again

Related Tax Questions