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I sold my house to my daughter dollar and she gets 900.00…

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I sold my house to...
I sold my house to my daughter for a dollar and she gets 900.00 rent from section 8 cashes it and gives it to me.Now she has to claim it. How can i figure out how much i would have to pay tax on the 900.00. I also pay the taxes and water bill. Thank you Elaine
Submitted: 2 years ago.Category: Tax
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2/21/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,363
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Hello

When you "sold" your house for $1 you actually made a gift so you need to file form 709 and report that gift.

The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.

You will not pay tax as long as you have not given away more than $5.45 mil over your life but you must report the gift.

The rental is now your daughter's reporting requirement because you no longer own the house. She most likely will not pay tax either because she can claim expenses and depreciation so no rent to pay tax on. She files Schedule E. She can also claim the taxes and water bill as a deduction.

You are not taxed on the $900 she gives you. That is a gift technically from her to you.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago

After you read the above respond below

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago

I know you must have questions about this, please post if you need clarification.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago

The system alerted that you responded but I do not see a post

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