Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

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)

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

6 Comments 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. 


Here's wishing you many Happy Returns
BobKamman
Level 15

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

0 Cheers
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

 

0 Cheers
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
sjrcpa
Level 15

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


Ex-AllStar