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Gift Property |
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If I receive property as a gift and then sell it right away, will I be responsible for the gift tax and capital gains tax or just one of them?
Thank you . |
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Gift taxes, if any are due, are paid by the donor, not the recipient. Depending on the size of the gift, it's likely no actual gift tax would be due -- the matter is complicated and should be explained by a lawyer or CPA who knows the particular situation.
As for capital gains tax -- when you receive the property as a gift, you also take over the donor's cost basis. When you sell, your calculation of taxable capital gain starts with that figure. Again, it can be complicated and a CPA should be consulted. |
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Edith
Originally published on November 19, 2007 |
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