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Hi and welcome to Just Answer!While gifts between spouses generally do not have any tax consequences - different rules apply where the recipient spouse is not a U.S. citizen.A partial marital deduction is allowed for gifts to non-citizen spouses - for 2011 this exclusion equals $134,000.If you gift more than this amount - you are required to file a gift tax return.However - the gift amount in your situation is not the value of the property - but your equity which is the total value of the property minus mortgage liability.Thus if the house value is $320,000 and your mortgage is $250,000 - the value of your gift is ($320,000 - $250,000) / 2 = $35,000 that is within the marital deduction limitation.Let me know if you need any help.
my wife is a green card holder also, so you mean that the gift is actually half of the down payement not the value of the house , is that correct?
Hi are u still there
Yes - that is correct - the value of a gift which is a subject of liability should be reduced by that liability.
For gift tax purposes only matters if the recipient spouse is not a U.S. citizen.