Have a Tax Question? Ask a Tax Expert
Hello and thank you for using Just Answer,Please accept my condolences on your loss. The amount in the checking account was a gift on the day your father added your names. Your father would have been required to report in the year of the gift any amount over the yearly limit. That would still not mean tax would have been owed. He did have a lifetime limit (now just over $5mil) that could have been used to exclude form tax.
The removal of the money would not trigger gift tax now.
The purcvhase of the property interest from your sister would not be suspicious. Your sister though needs to remeber to file the sale on her tax return. even if a loss.
A little more on gift taxes. The receiver does not pay the tax.
The giver pays (generally). But the giver has not only the yearly limits they also have their lifetime limits so rarely is gift tax actually owed.
since my father put us on the accounts in 2011 and died about 6 months later that same year, should one of us filed a gift tax return for him
Yes, the form 709 would need to be completed for the tax year of the gift.
would it be prudent to go back at this later time and do one? no tax should be involved but from what I read the return has to be done.
Yes, the return does need to be filed.
ok. thank you
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