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equity gift tax

Jerry C
Level 3

Parent selling property to daughter, who is married with 2 children. Property assessed at $325,000 selling at $325,000 (equity)gifting $60,000 ($15,000 for each)= $265,000

is there any taxable amount from gifting to either parent or child?

(Parent owns house outright and has lived in the house - with children- for at least 2 of the previous 5 years)

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6 Replies 6
George4Tacks
Level 15

Married with two children (and a spouse?) = 4 people? each is gifted $15.000. The gift exemption for 2020 is $15,000 so as long as you don't give any of them a Christmas or birthday gift, there would be no gift tax due. 


ex-AllStar
Jerry C
Level 3

Sorry. I know the gift tax for 2020 is $15,000

The "Equity" Gift tax is different.

I know with the Equity Gifting you can give whatever you want. I also know if it's above the limit (In this case $15,000- since the daughter will be the only 1 on the deed)

I also know there is a lifetime $5.43 Million in gifting so a Form 709 would have to be filed

 

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sjrcpa
Level 15

You're a little behind on the current lifetime estate and gift tax exemption amount.


ex-AllStar
BobKamman
Level 13

How old are the kids?  All four names are on the deed?

Jerry C
Level 3

Daughter will be the only 1 on the deed

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sjrcpa
Level 15

You have part gift and part sale. Gift is all to the daughter since only daughter will own the home. Parent needs to file a gift tax return to report the gift. If parent's gain is over $50K, the excess will be taxable.


ex-AllStar