Posted on: 24th Nov, 2009 05:00 am
Will gift tax have to be paid if 2 houses are transferred in Mass from from a mother to a son. one house is valued at $150,000 and one is $200,000. The original purchase price between the two was approx $85,000.
No need to pay gift tax.
Thanks.
Thanks.
I do not know exactly what is gift tax is?
Is it binding as other taxes?
Is it binding as other taxes?
Hi marga,
The tax, that you need to pay the Govt. for having gifted someone money or property, is known as gift tax. It is binding on any donor who has gifted money or property. However, if you have gifted money or property worth not more than $13k, you do not have to pay any gift tax. Even if the gift value exceeds the annual gift tax limit of $13k, you can claim exemption under your lifetime gift tax exemption of $1 million.
Thanks,
Jerry
The tax, that you need to pay the Govt. for having gifted someone money or property, is known as gift tax. It is binding on any donor who has gifted money or property. However, if you have gifted money or property worth not more than $13k, you do not have to pay any gift tax. Even if the gift value exceeds the annual gift tax limit of $13k, you can claim exemption under your lifetime gift tax exemption of $1 million.
Thanks,
Jerry