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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 577
Experience:  10 years experience
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My father is 90 yrs young and wants to give me his home he

Customer Question

my father is 90 yrs young and wants to give me his home he owes $10.000 and my deceased mothers name is ***** ***** property. How can we accomplish this with out a lot of taxes and red tape?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
In the US - a gift - is not taxable income for the recipient and the donee does not need to report it to the IRS.There is no any amount limit.Please see IRS publication 525 - page 31 -http://www.irs.gov/pub/irs-pdf/p525.pdfGifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you.You - the donor is subject of US gift tax regulations.That would be the donor who files form 709 - gift tax return - not recipients of the gift.The gift tax return is required when the total value of the gift is above $14,000 (for 2015) per person per year.There will not be any gift taxes unless the lifetime limit of $5,430,000 (adjusted every year for inflation) is reached.So far - neither will have tax liability.But because the gift is above $14,000 - you will need to file the gift tax return - but most likely - will NOT owe any gift tax.Please seeGift tax returnhttp://www.irs.gov/pub/irs-pdf/f709.pdfinstructionshttp://www.irs.gov/pub/irs-pdf/i709.pdf