Property Transfer

Guest 0.10 Dollars($)

Hello,
My divorced parents are giving me property to purchase a home. They are both still on the property and are signing a quit claim deed. The property was purchased for around 10k. I am hoping to sell it right away for 35-40k. 1. Do my parents split the value of the gift? 2. Is the value of the gift determined by the selling price of the property or do we need an appraisal? We live in Michigan and the property is in Tennessee.

Guest 0.10 Dollars($)

I apologize I believe I posted this in the wrong forum. Should I repost?

helping_user

Don't worry Dee, it's ok if you have posted it in this forum. But yes, this query was quite appropriate for the quitclaim forums.

Anyway, coming to your query, if your property is transferred as a gift (without you paying any money in return to your parents or may be you paid some money less than what you bought the house for), the value of the gift will be determined by the fair market market value of the property at the time of transfer.

The fair market value is the price that the buyer has agreed to pay for purchasing your property. This is usually determined by the comparative analysis. Know more... .

jerry

helping_user, Dee can also go for an appraisal. In fact that's a better option to determine the fair market value of the home.

dee, please check out this forum thread to know How you can set the home value .

Thanks,

Jerry.

Guest 0.10 Dollars($)

Thanks for the responses.

"by the fair market market value of the property at the time of transfer."
Can you clarify for this me? Is their gift to me the time of transfer and FMV will need to be determined then?
Also, my question about splitting the value of the gift. Do both parents have to claim the gift? Can my father only report the gift on his taxes.

Samantha

Hi Dee,

Guest 0.10 Dollars($)

Thanks for all the information!

I still am unclear though... My parents are not married. They will not have a joint return. Can only my father report the gift to me?

sara · Posted: Wed Feb 13, 2008 3:09 am Post subject: RE: report gift

Hi Dee,

What I feel is, if your mom transfer the entire property to your father and your father then gifts it to you, then only the latter will be able to report the gift to the IRS.

Take Care

Guest 0.10 Dollars($)

But... if they are no longer married and not related, she would have to report the gift to him???? I guess it would have been easier if they would have taken care of the deed at time of divorce. Oh well. Thanks for all your input!

sara · Posted: Thu Feb 14, 2008 2:16 am Post subject: RE:

What matters is, who are on the title. Whoever wants to transfer property has to be on the title, so are your parents. And that's the reason both have to report the gift to the IRS.

I hope you understand.

Take Care

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

Hi Dee,

If your parents have lived in the property for 2 out of the last 5 years then I would suggest that they sell it and give you the money. That way there are no capital gains tax. Just thought I would mention it just in case it might apply.

freds11 · Joined: 17 Mar 2008 Posts: 17 4.91 Dollars($)

That is a good point. I never thought of that.

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