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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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Parents want to gift me their home. It is worth about ...

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Parents want to gift me their home. It is worth about 950000. They have the cheaper tax rate that is transferable to me. How to we change ownership of the house to me from them. There is no loan on the house.

Your parents will use a quit-claim deed to transfer ownership to you. Please be advised that they will need to file a gift tax return, and that they can split the gift between them, so that each gifts you 475K interest in the home. They will not pay gift tax until they each gift more than 1 million lifetime of taxable gifts.

Also please note that you will not receive a "stepped-up" basis in the home that you would if you were to inherit the home from your parents. You will assume your parent's basis in the home, which means higher capital gain tax for you when you sell.

Wendy Reed and other Tax Specialists are ready to help you