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