What are the real estate laws/taxes if your parents give you a house they own out right?
Posted by admin on 8 Jul 2010 10:14 am. Filed under Renting & Real Estate.
Sherri S
Does anyone know the Florida real estate laws regarding giving a house as a gift? Can it be done? If so, what are the tax penalties?
Does anyone know the Florida real estate laws regarding giving a house as a gift? Can it be done? If so, what are the tax penalties?
My parents own the house that I currently live in. If they wanted to give the house to me as a gift can that be done legally if the house is paid for?
Thanks!
Thank You
the house was purchased in 2005 for $148K. It is probably worth less now because of a serious drop in the local market.
On July 11th, 2010 at 7:00 pm
Your parents can gift the house to you at any time. You would have to file gift taxes with the IRS depending on how much the house is worth – over $1.1 Million – then you may need to pay a gift tax which requires liquid resources.
{EDIT} Your parents would have to file gift taxes even though the Feds allow a total of $1.1 Million to be gifted for an entire lifetime – only in $11K portions. Perhaps setting up a trust with you as the beneficiary may be one way to avoid taxes.
On July 12th, 2010 at 5:25 pm
In Michigan, your parents can gift you 10k each without any tax. If you are married, that can be 40k per year.
Do it over a period of time and there will be no taxes.