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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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My parents want to give my husbamd an me their old house in

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My parents want to give my husbamd an me their old house in Houston, Tx. The house is valued at about $50,000. They own the house together. Will they have to pay a gift tax. Or can they each claim the $14,000 exclusion for each of us (for a total $56,000 exclusion)?

Megan C :

Thank you for your question. My name is XXXXX XXXXX I will be happy to assist you today

Megan C :

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

Megan C :

Their basis becomes your basis (which is what any gain or loss would be calculated using in the event you sold the home).

Megan C :

Also, They can each gift you $14,000 for a full $56,000 exclusion, and no gift tax return would be due

Megan C :

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.

Customer:

Thanks Megan. Do we need to hire an estate attorney to handle the gifting, or perhaps a CPA?

Megan C :

A CPA would suffice. You don't need an estate attorney to do this

Customer:

Thanks Megan. DO we need to hire a real estate attorney or CPA to handle the gifting?

Megan C :

A CPA should suffice

Customer:

Sorry for the repeat question. My computer is a bit wonky today. You have been a great help!

Megan C :

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

Customer:

I will definitely do that. Where do I give the rating? I don't see the option on this page.

Megan C :

There should be a rating feature along the bottom of your screen. 3-5 smileys or stars would give me a positive rating

Customer:

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.

Megan C :

Okay I got a number offline 1(NNN) NNN-NNNN/p>

Megan C :

I can also turn it in, so no worries. You said you wanted to rate me

Megan C :

I appreciate the opportunity to work with you today

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