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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29484
Experience:  Taxes, Immigration, Labor Relations
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I am purchasing my house from my parents in California. I

Customer Question

I am purchasing my house from my parents in California. I am wanting to make sure there are no suprises. Mom is filling out a 593C... They will get about 18K out of the sale. What about gift equity; any tax liability?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
What are your specific issues with that form?
Customer: replied 1 year ago.
My parents live mostly in Oregon/here/Arizona . I don't want them hit with any taxes for gifting me the house
Expert:  Lev replied 1 year ago.
There is no taxes for "gifting" - but you states that you are PURCHASING the house - so - there are two transactions - gift and purchase - and on purchase - you woudl need to calculate the gain.
Expert:  Lev replied 1 year ago.
There is no taxes for "gifting" - but you stated that you are PURCHASING the house - so - there are two transactions - gift and purchase - and on purchase - you woudl need to calculate the gain.So far - we need to know the percentage of sold value and the percentage of gifted value - and will will treat these two transactions separately.
Customer: replied 1 year ago.
Is this true for state and federal?
Expert:  Lev replied 1 year ago.
Yes - same is true for federal and state levels.You prepare your federal tax return first as state tax law is mainly based on the federal tax law.Then - you prepare state tax return using information from your federal return.There are some difference in tax calculations between federal and state - and California issues a publication regarding such differences. California Conformity to Federal Law - see here https://www.ftb.ca.gov/forms/updates/conformity.shtmlBut in this specific situation - there is no difference.In additional - because the property is transferred from parents - in California - you might be eligible to transfer tax basis - for property tax purposes.

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