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Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience:  Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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Similar situation to couple renting a condo to daughter/son-in-law.

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Similar situation to couple renting a condo to daughter/son-in-law. Your final answer was the $10,000 income could be considered Gifting by daughter/son-in-law.

Our situation is that our daughter resides in our condo (which we consider our second home) and pays (what we consider condo expense sharing) $1,200 per month. Some months we waive payments. Condo is held in a Trust and she is beneficiary of trust.

Since this comes in at $14,400, i.e.,over the $13,000 allowable annual Gift from our daughter to us, how should we treat the overage?

Since we don't consider this a rental unit, we do not take depreciation or itemize maintenance expenses (we do deduct mortgage interest and r.e. taxes.)

Thanks for using, and thank you for requesting me.

Both you and your spouse have an annual 13,000 dollar exclusion to each individual you give. So, you can give your daughter up to 26,000 dollars annually (13,000 dollars from each of you) without incurring a gift tax consequence.

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Customer: replied 3 years ago.

But, my daughter is "gifting" us with her $1,200 (almost) monthly payments.



She can give 13,000 dollars to each person (you and your husband are considered separately in this situation) as well, so there is still no gift tax consequence on her end.

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