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So by quitclaiming the entire house and value is $225K aren't they exceeding the annual exclusion or will the IRS just space out the "gift" exclusion to multiple years?
would the house still be partially considered theirs until the entire value of the gift was reached.
I was told I would have to rent it back to them for fair market value to allow them to live in it.
also i thought the lifetime exclusion was $1,125,000. Did something just recently change?
i pasted in the address you gave me but only took me to an IRS homepage.
is there a .com or .org missing on the end?
thanks, XXXXX XXXXX work however it just confused me more.
it did list the lifetime exlusion at $5.2M (and change) BUT it then later said the maximum anually exclusion is $14K per donor to donee.
Very confusing, as they want to immediately quit claim entire house so I woudl think they would have to report the entire amount next year and would only be allowed the $28K and then get hit with taxes on remainding gift.
Mother in law just got diagnosed with advance stage cancer and does not want house to be subject to medical bill payment which is why the quit claim is desired.
thanks for your patience....really need to understand this quickly.
getting real close and this will sound like a crazy question but how will that impact them/us at death when estate is being settled? Not even sure I am asking that question correctly. They dont own a ton more than the house/cars/contents in house....dont believe they have life insurance, so not sure other than the house cant be much to settle after death. Not sure how that works. Mother in law sure to have large medical bills coming soon. Apreciate any further insite you can provide, and again, thanks!