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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13314
Experience:  15years with H & R Block. Divisional leader, Instructor
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What are the tax implications parents if they add my name

Customer Question

What are the tax implications for my parents if they add my name onto a real estate deed. The house is their rental property and is assessed at the 1975 rate in California. if the house is currently assessed at 200000. Would they qualify for the lifetime gift tax exemption?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

Your parents would be subject to gift tax reporting if they give you part ownership of the property.

They could use their life time allowance to avoid gift tax. The form 709 would be filed to claim the life time allowance.

They qualify as long as they have not used up their lifetime allowance already (they each have $5.43 million in lifetime allowance for gifts).

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Customer: replied 1 year ago.
How would that work with the yearly giftable maximum? An would all 200,000 be assessed in the lifetime gift exemption or would it be half
Expert:  Robin D. replied 1 year ago.

They each have $14,000 so the first $28,000 will be exempt, then their lifetime allowance would be used (it is called unified credit on Form709) to cover the remaining.

The remaining would reduce their lifetime allowance.

The lifetime allowance is used when the pass so if their estates are more than what is left there would be estate tax at that time.

Using up your lifetime allowance means your estate may have tax. If they do not anticipate having more than $5 million in their estates then no problem.

Expert:  Robin D. replied 1 year ago.

They each complete a 709 showing their parts of the gifts if that is what you meant by halving.

Expert:  Robin D. replied 1 year ago.

Please advise if you need more information or rating in a positive way is acceptable.

Expert:  Robin D. replied 1 year ago.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Expert:  Robin D. replied 1 year ago.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.