How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15305
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

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

Customer Question

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: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

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.

Expert:  Robin D. replied 1 year ago.

After you read the above respond below

Expert:  Robin D. replied 1 year ago.

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

Expert:  Robin D. replied 1 year ago.

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

Related Tax Questions