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The value of the gift isn't the fair market value of the house, it's the amount of the basis that the parents have in the house. The basis is what they purchased it for, plus any significant improvements
Their basis becomes your basis (which is what any gain or loss would be calculated using in the event you sold the home).
Also, They can each gift you $14,000 for a full $56,000 exclusion, and no gift tax return would be due
They would likely not have to pay a gift tax even if they filed a gift tax return, because you are allowed $5.2 million in gifts tax free.
Thanks Megan. Do we need to hire an estate attorney to handle the gifting, or perhaps a CPA?
A CPA would suffice. You don't need an estate attorney to do this
Thanks Megan. DO we need to hire a real estate attorney or CPA to handle the gifting?
A CPA should suffice
Sorry for the repeat question. My computer is a bit wonky today. You have been a great help!
No problem on the repeat question. I'm glad I could help. If you would, please rate me positive so that I may receive credit for assisting you today
I will definitely do that. Where do I give the rating? I don't see the option on this page.
There should be a rating feature along the bottom of your screen. 3-5 smileys or stars would give me a positive rating
There are no smiley faces, just blank space. Is there another page I can go to or perhaps a number I could call? I want you to get a good rating.
Okay I got a number offline 1(NNN) NNN-NNNN/p>
I can also turn it in, so no worries. You said you wanted to rate me
I appreciate the opportunity to work with you today