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Financial Planning / Tax Strategies
|Subject: Re: Gifting a House to Your Child||Date: 3/31/2013 6:01 PM|
|Author: TMFPMarti||Number: 118233 of 121159|
We have gifted our home to my wife's oldest son (and we now live in a continuing care facility). It is appraised at $315,000 with no mortgage. I understand that this gift will be tax free and counted against our $5 million exclusion for inheritance. But how do I actually put this on our 1040? I have Googled quite a bit. For example, Form 709 does not seem to apply (no generation skipping), but the directions are long and rather confusing.
Form 709 is the winner. It's two, two, two tax returns in one (gift tax and generation skipping transfer tax).
I assume neither of you has made a taxable gift before. If that's the case, it will be pretty easy. Start at the beginning, do the gift-splitting Part 1, then go to Part 1 of Schedule A. You'll just have one entry there. Then it's on to Part 4 of Schedule A. All you do there is the first three lines; line 11 equals line 3, and you're back to Part 2 of the 709 and the finish line.
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