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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15037
Experience:  15years with H & R Block. Divisional leader, Instructor
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Can you gift part of your home to your children? I know that

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Can you gift part of your home to your children? I know that would have the same basis the homeowner would have, but would that help with Capital gains tax in the long run if they are in the 15% bracket for Cap gains, as opposed to the homeowner being in the 20% cap gain...what about putting your child on the deed...would that be considered a gift if selling the home????

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.

Robin D. :

The child would then own part the home (and you are correct their basis would be the same as parents).

Customer:

ok....and they would pick up the cap gains at their rate.....

Robin D. :

The CGT on sale would be based on holding period so if long term they may see a lower rate then parent

Robin D. :

Putting them on the deed would be a gift event

Customer:

Would I have to file a gift tax return? What if we just put the on the deed

Robin D. :

Form 709 would be needed if their portion was more than $14,000

Customer:

But it is feasable....

Robin D. :

Yes, it is feasible

Customer:

Would I have to file if they just went on the deed?

Robin D. :

Yes

Robin D. :

if the FMV is more then $14,000

Robin D. :

then the 709 is required

Customer:

it does not matter who he would gift it to.

Robin D. :

of course the lifetime would most likely protect from actual tax

Robin D. :

Correct, if you mean about the gift tax filing

Customer:

yes..if it does not change

Robin D. :

Gift is a gift

Customer:

yup...that is what I thought.........thanks

Robin D. :

You are most welcome

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