Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

Please explain to me how my wife and I can be gifted a house

by my mother-in-law and it...
Please explain to me how my wife and I can be gifted a house by my mother-in-law and it fall within a tax free area of the supposed 5 million dollar ceiling. We then want to take out a loan against the property and gift her a combined $28,000 a year($14,000) each.
Show More
Show Less
Ask Your Own Tax Question
Answered in 16 minutes by:
6/4/2013
socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 39,346
Experience: Retired (mostly)
Verified
Hello,

Your mother-in-law (MIL) can deed the property to you and your wife, and report the value of the gift on IRS form 709. Assuming that the value of the gift is less than the current maximum lifetime exemption amount ($5,250,000 for 2013), then that part of the transaction is complete, and there is no tax effect for your MIL or for you and your spouse.

Once the property is in your name, assuming it is entirely paid off, you can find a lender to refinance the property for the maximum amount your income and the property value can support. Then, you would simply hold the money in some interest bearing account and use the proceeds and principal to make gift payments to your MIL. If the payments are no more than $14,000 for both you and your spouse, then the gifts are nontaxable, and nonreportable to the IRS, for either you or your MIL.

That's pretty much the whole deal.

Hope this helps.
socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 39,346
Experience: Retired (mostly)
Verified
socrateaser and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask socrateaser Your Own Question
socrateaser
socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 39,346
39,346 Satisfied Customers
Experience: Retired (mostly)

socrateaser is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Buying out members of Law Firm PLLC A law firm consist of 3
Buying out members of Law Firm PLLCA law firm consist of 3 lawyers 50/25/25. The two minor owners are going to buy out the 50% owner.1) Can the PLLC write a check to the 50 owner? If this happens, wou… read more
taxmanrog
taxmanrog
Master\u0027s Degree
697 satisfied customers
Are you familiar with income tax laws on business and
Are you familiar with income tax laws on business and personal returns? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can I report rental income in my tax return on a property
Can I report rental income in my tax return on a property thar is owned by my father? He does not live in the US is not a US citizen and can sign a document to allow me to receive the rental… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I have a question on Tennesse tax law. No, just a general
No, just a general question, I'm a subcontractor in the state of Tennesse and sub under a company based in Georgia. The laws here seem kind of fuzzy on whether to charge tax for labor and parts for house call repairs on major home appliances. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Under current law a 100,000 taxable income pays $10,365 plus
Under current law a 100,000 taxable income pays $10,365 plus 25% of the amount exceeding $79,400 i.e. about $16,000. Under tax reform will the tax be $25,000? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Question for a Tax Attorny who Knows US tax Laws regarding
Question for a Tax Attorny who Knows US tax Laws regarding Foreign Companies ? My company is a Cayman Company (#1) (Foreign) owned by USA Citizens (2). Company (#1) filed IRS Form 8832 to be Taxed as … read more
taxmanrog
taxmanrog
Master\u0027s Degree
697 satisfied customers
On a property sale which 4 members have a 1/3 interest on
On a property sale which 4 members have a 1/3 interest on the sale. … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
717 satisfied customers
Looking for the specific law in Massachusetts where a tax is
Looking for the specific law in Massachusetts where a tax is collected on a core but not credited on its return. … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If I buy a commercial + residential rental income property
If I buy a commercial + residential rental income property worth $1.2M in TEA. I will put in 250k in down payments and gradually invest $150k via mortgage payments and $100 for the salaries of the sta… read more
abci168
abci168
Principal
27 satisfied customers
We are interested in buying a solar farm. What are the tax
Hi! We are interested in buying a solar farm. What are the tax incentives? Is it just the 30% tax credit, or will we get to depreciate all the solar equipment with bonus depreciation? Thanks! … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Wife owns property individual, picks up rental income on
wife owns property individual, picks up rental income on Sched E - husband and wife live together in another home. Wife wants to rent husband the house for his business - both Sched C - does this make… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Summary: I did receive IRS audit for un-reported income for
Summary: I did receive IRS audit for un-reported income for year 2014. Details: my brother did taxi service and I did open square up merchant account so he can charge his customers using credit cards … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,215 satisfied customers
Income tax question. Are there any ways that interest on an
income tax question. Are there any ways that interest on an insurance policy can be tax deductible? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
My question involves immigration law and tax law. Foreigner
My question involves immigration law and tax law.Foreigner comes to USA, becomes permanent resident. Had assets from before. I was told if you bring up to 100k USD per year to the USA, IRS doesn't min… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I received a corrected income and tax from the IRS for 2015.
I received a corrected income and tax from the IRS for 2015. The money that they are referring to is a beneficiary payment from my dad's passing. … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,215 satisfied customers
I moved from a community property state to a common law
I moved from a community property state to a common law state last year. My spouse earned no income but I did. Our join tax refund was offset for his child support debt. Can I file the injured spouse … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,215 satisfied customers
Can the lawyer answer questions pertaining to IRS tax law
Can the lawyer answer questions pertaining to IRS tax law concerning capital gains tax and determining the cost basis … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I owned a house and the interest, insurance, property tax
I owned a house and the interest, insurance, property tax are tax deductible, and which line should I put it in form 1040. Thank you… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x