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<<First, I apologize if i seemed impatient. I certainly appreciate your help.>>

No apology necessary. I just wanted to let you know that we are running as fast as we all can. Sometimes we can get to a question sooner...sometimes later. I didn't mean to chastize...simply inform.

<<Your answer makes perfect sense. But the reason I am confused is a post on the same subject made by attorney Riser that read in part:

"Yes, generally, a taxable gift will have taken place if a parent furnished all of the consideration for the real property and transfers title to the parent and child as joint tenants with right of survivorship.

And, yes, the entire value of the house would still be part of the parent's taxable estate because the child did not contribute to the purchase or the improvements. It actually does mkae sense because what's being taxed either by gift tax or estate tax (it's a "unified" system) is 1) the value of the gift at the time of the gift, plus 2) the value of the parent's interest at death, plus 3) all of the appreciation, which, after you add it all up, is the total value of the property at death.">>

What was explained here is, I believe, the "common" problem that a taxable gift is made, but never reported as such. So when the estate tax return is filed, there are no taxable gifts to report (since none were ever reported...only the NAME was placed on the asset). But if the gift is done legally and correctly, then future appreciation is treated as I implied in my prior post. You don't get smacked twice.

In the original post, I believe, it was assumed that only the title had changed, but no gift tax was ever reported or paid. In that case, the "joint" property is ignored for estate tax purposes.

<<So this leaves me confused as to whether the entire value of the property is part of the taxable estate, as attorney Riser seems to say, or only the parent's 1/2, as you seem to say.>>

I think that we were discussing different issues...which is why we arrived at different conclusions.

<< Also, is all of the appreciation taxed at time of the parent's death, as attorney Riser seems to say, or only the appreciation on the parent's portion, as I understand you to say.>>

Again...different issues and different conclusions.

<<Again, I certainly appreciate any help you can provide.>>

I hope that this does help...
TMF Taxes
Roy
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