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Gifting property to family members: 3 tips to save tax

i want to give a property to my family as gift ( son,wife,brother ) what is the policy if i don' t want to pay tax,and i f i have to pay what is going to be.I purchased this unit for $270,000+gst and now in this market nobody buying it,last year price was 400,000.this property bought for investment and was rented out for two years.my email
"peaceandfreedom55@hotmail.com"

[size=9:cfe55fdec2][color=Red:cfe55fdec2][Link deactivated as per forum rules. Thanks.][/color:cfe55fdec2][/size:cfe55fdec2]

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome praceandfreedom,

If you gift a property to someone, you will be incurring gift taxes.
However you should note that there are certain cases in which you can get gift tax exemptions. Gift transfers up to $12,000 per person per year are not subject to the tax. Moreover a lifetime gifting limit of $1,000,000 is allowed. Once you cross this limit, you will incur gift taxes. Apart from this, when you gift a portion of the property to your spouse, then it will be considered as non-taxable.

Apart from this, you will be liable to pay gift taxes.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my dad wants to give my 12 year old son a car as a gift can i change the car under his name at the dmv

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi llandy

A query similar to yours has been answered in the given link:
http://www.mortgagefit.com/propertytransfer/car-gift.html

Please take a look at it. I hope it will help you.

Thanks.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I wish to transfer the residential site which is in my name at bangalore to my son and daughter-in-law as a gift. Please let me know the procedure tobe followed

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi subhash,

Are you in the United States? Which state do you live in? Generally, a quit claim deed helps you transfer your property to someone else. If you are transferring the property you will be referred to as grantor and those receiving the property will be known as grantees. However, it is always better to consult an attorney before transferring the property.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am starting a business and would like to gift my paid house to my wife or kids to protect the home incase of a possible lawsuit involving the business that might put my home in jepordy. Can i do this without incurring taxes?

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mike,

You can transfer the property to your wife or your children without incurring taxes. You can transfer it as a gift to them. You are entitled to an annual gift tax exemption of $13000 and a lifetime exemption of $1 million. Thus, you can avoid paying taxes to the extent of these gift tax exemptions. Contact an accountant or a tax advisor to know more on how you can claim these exemptions or if you qualify for any other type of exemptions.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my sister wants to gift me her house, how would she go about doing this and how much would it cost? How would the tax thing work? i was reading that the lifetime gift can be up to $1,000,000 is tax exempt?

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To sovanny,

It is true that a person is entitled to a lifetime gift tax exemption of $1 million. One is also allowed to gift up to $13k annually without paying any gift tax. Thus, your sister can gift you her house and she can avoid paying tax, given the value of the gifted property does not exceed the lifetime gift tax exemption limit.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

savior70, I'm not 100% sure that the lifetime gift tax exemption applies to gifting property. I emailed the writers of "Subject: Tax Code - Estate and Gift Tax" asking if it applies. One responded: "Please don't confuse the annual exclusion with the current year's zero tax on estates. I don't know how to gift property. Cash is easy to transfer with no tax consequences, you transfer the annual exclusion amount each year."

So, I googled "how to gift property," and found "Giving Property As a Gift Requires Creative Tax and Financial Planning." It's an old article, so change every $11,000 to $13,000 and it should solve all your questions.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I gift property to my daughter without her spouse having any rights to the property?

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You can transfer the property to your daughter's name in order to make her the owner of the property. Unless you add her husband's name to the property, he won't be able to claim any ownership rights to the property.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My father gifted property back in 2005. The fair marker value id 91,000.
I plan to sell the property in 2011. What will my tax liability be?

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi SteveW,

If you earn a profit from the sale of the property, you will be liable for paying capital gains taxes.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My brother and I each own 2 properties together. We want to go separate ways. Can I gift him my half and he gifts me his half?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jonnywebbhead!

Welcome to forums!

Yes this can be done. Both of you need to sign the warranty deed or a quitclaim deed in order to transfer the property. You can even contact a real estate attorney and take his help in transferring/gifting the property.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello, I gave my married son a POA; he gifted my Sole Propietor Real Estate business into an LLC under his name while I was really ill with Depression due to my husband passing. Now, I am on the road again; and I want my business back. I cry everyday because I am afraid of the tax implications if I take over the LLC's ownership. I do not know what to do. Please, hel!!! Shelly Queens

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Shelly,

Well, the tax implications of an LLC differ from those of corporations. LLCs use "pass-through taxation," as they don’t pay taxes. The income of the business will pass on to the owners who are called members in LLCs. They claim the profits or losses on their personal tax forms.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Donate a truck worth less than 10k to my Son in La.
and avoid he, or I from having to pay sales tax
I understand the Notzrty will have chrges, but otherwise?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jJJR,

You have gifted the property to your son. Thus, you will be liable for paying gift taxes. However, there is an exemption limit. If you are within that exemption limit, then you will be liable for paying the gift tax.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

gift a property to my married sisters son wo is dead

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi deek!

Welcome to the forums!

If a person is already deceased, then you cannot transfer property in his or her name.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what forms do I have to fill out for no transfer taxes?
Thank you for your time and assistant.

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Shu,

You should contact a real estate attorney and he will help you in knowing the type of forms you will have to fill out for no transfer taxes.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I want to pass the ownership to my 17 year old son .
What ie the best way to do so to avoid taxes ?
The value of the condo is now some 35,000 $

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi VAL,

You will not be able to pass your property to a minor child. Your son has to be 18 years old in order to own a house/condo. Once he becomes an adult, you can speak to a tax adviser and take his opinion in order to avoid taxes while transferring property.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother has 7 acres that she would like to gift to my husband and I. We live in Missouri. Will either my mother or I have to pay taxes on the gift? The value of the land is $12,000.

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