Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I may have made a mistake. I gave my house to my daughter…

Customer Question
I may have made...

I may have made a mistake. I gave my house to my daughter with lifetime agreement to live here and pay taxes and ins. I lost my homestead exemption and I did not consider gift tax. can I or should I reverse that decision and take back my house. I wanted to gift my assets while still living to avoid conflict when I die. my plan was to buy my son an equal property.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Only that I have in mind to buy my son a property of about 250 thousand. is this a bad plan tax wise.

Submitted: 8 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
11/15/2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 8 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,669
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

HI, MY NAME’S LANE - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

If you’ll please bear with me for a minute I’ll type up my initial response, and then we can go from there if you have further questions on this.

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 8 months ago

Likely not. At least not for gift tax purposes.

...

The lifetime exemption for the gift and estate tax is $5,490,000 for someone dying in 2017. The gift tax and the estate tax are part of a unified system ... meaning that If you give away, say 3,000,000 during life, you can still leave 2,490,000 without incurring an estate tax.

...

However, for purposes of any eventual sale by those that you gift assets, you ARE increasing their taxable capital gain.

...

Capital gain = sales price - basis

...

Basis is normally your purchase price plus any improvements to the asset (what you have IN the property)

...

But gifts have what's called "carry-over basis." The basis of the giver carries over to the gift recipient. ... So their capital gain will be their sales price minus YOUR basis.

...

However, if assets are INHERITED the heirs receive what's called a step-up in basis ... (to the fair market value of the asset on the date of your death) ... meaning that they could sell fairly quickly (within a year or so, before prices have risen) and have no taxable gain at alll.

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 8 months ago

Your daughter CAN give back the house (use a quit-claim deed to re-title the house to you). Then, as long as you live in the home as your primary residence the homestead exemption will then apply.

...

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating, using the stars on your screen, and then clicking “submit" – That’s the only way I’ll be credited for the work.

...

But again, if you need more on this, please let me know.

Lane

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,669
14,669 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane 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

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,512 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 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.

< Previous | Next >

Related Tax Questions
I gave my son a check in 2016 to buy me a condo that cost
I gave my son a check in 2016 to buy me a condo that cost $135,000.00. Because I was unable to attend the closing he bought it in his and his wife's name. I am thinking Perhaps we should do a quick cl… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Can I withdraw 100,000 (half of my Roth IRA) -take a
Can I withdraw 100,000 (half of my Roth IRA) -take a distribution- and give it to my adult child for a down payment on a home for her? Will it be taxable to her? Is it subject to gift letter amount? a… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,450 satisfied customers
I am currently living with my second husband, in a house
I am currently living with my second husband, in a house that he alone owns. My son from my first marriage lives with us. I'm retired, and receive a very small amount from my pension and social securi… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
We are buying a house. My daughter wants to give us
We are buying a house. My daughter wants to give us approximately 1/3 of the down payment. In return she would get 1/3 the value of the house if we decide to sell before we die, or 100% of the value o… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Parents are advanced in age 82 and 71, and live in CA. They
Parents are advanced in age 82 and 71, and live in CA. They have a son and daughter. They own 2 houses, HouseA they live in and HouseB their daughter currently lives in. In the past, they had a HouseC… read more
socrateaser
socrateaser
1,031 satisfied customers
We have a house in New Jersey which has been rented for 26
We have a house in New Jersey which has been rented for 26 years. We live in Florida and are thinking about giving our house to our son who lives in NYC. However, we wonder what is the best strategy t… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
If my daughter and son-in-law bought their first house and
If my daughter and son-in-law bought their first house and his mother gave them half of the money and they financed the the other half how would that affect their taxes?… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
My mother owns her home, which is in a trust with her 4 childrens
My mother owns her home, which is in a trust with her 4 childrens names. She is very low on cash to live on. She is 84, fair health. What is the best way to give her cash, can we children buy the hous… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Im buying a home in Bremerton, WA.My son will live there
I'm buying a home in Bremerton, WA. My son will live there and pay mtg, ins, taxes. He hopes to buy the house at some point. Say 10 yrs from now he wants to buy it and the mortgage has been payed down… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If i buy a house and pay it fully,and than give it to my son
If i buy a house and pay it fully,and than give it to my son as a gift,do i have to pay taxes? or if i give cash money to him ,do i have to pay taxes ,is there a maximum of what i can give as a gift ?… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
When selling a non homestead, non primary residence how ...
When selling a non homestead, non primary residence how much profit can be given to a grandson and daughter in law without involving a gift tax?… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
How do I transfer property title without a reassessment
I own property with my husband, sister, and brother-in-law as joint tenancy. It was my mother's property ten years ago. She transferred it to my sister as a "parent to child" transfer. Then four years… read more
WebTaxMan
WebTaxMan
Tax Accountant
Bachelor's Degree
576 satisfied customers
I want to buy my parents house and live there too to help ...
I want to buy my parents house and live there too to help take care of them. They have a reverse mortgage of aprox. $115,000 and I have no down payment. They will sell me the house for $ 160,000 and g… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I was given a residential property as a gift. I lived in ...
I was given a residential property as a gift. I lived in the home for approximately 6 years. It was then left vacant while I decided what to do with it. I purchased another home as my homestead. In th… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
ST. LOUIS QUITCLAIM TAX STRATEGY Background 5 year old ...
ST. LOUIS QUITCLAIM TAX STRATEGY Background 65 year old Mother quitclaimed to son the family home for 1 dollar in 2004. Mother still lives in home and will continue to do so for next 10+ years. Origin… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My son-in-law and his wife (not my daughter) live in
My son-in-law and his wife (not my daughter) live in my home in Florida. They are raising my grandchildren. I plan to sell them the house for less than it's market value (by about $100K) and will be g… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Couple has current residentail property valued at about ...
Couple has current residential property valued at about $1.2M and business property valued at about $2M. Rest of assets are minor. If couple desires to add daughter to the deed on the residential prop… read more
Guru_Guy
Guru_Guy
Doctoral Degree
1,634 satisfied customers
Two years ago, my mother died, leaving me and my three ...
Two years ago, my mother died, leaving me and my three nephews her house. I bought out the three nephew's portion and I now rent the house to my daughter. If I sold the house, what perecentage rate wo… read more
RD
RD
Self Employed
Master's Degree
1,164 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