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Gift Tax On Transfer |
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Dear Edith: In your article you answered a gentlemen's question regarding changing a home title to his name, that was in his and his mother’s name. She paid for the house. How is it that no tax is due? A house is a bigger gift than the tax-exempt $11,000 a year (or $22,000 if it is to his wife and him.) |
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Unfortunately I don’t have space for all the details involved in every topic.But you're right, the change in title would involve a gift.
The federal government offers what is known as a unified gift and estate tax exclusion. Right now someone who dies can leave an estate of as much as two million dollars (not counting anything left to a spouse) with no federal estate tax due.Because of that unified provision, gifts made during a lifetime can count as part of that exemption. So although a gift tax return should be filed, no actual tax would be due
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Edith
Originally published on January 6, 2006 |
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