If I accept to sign papers from family member that put his/her house under my name... see details inside?
i dont own any other properties
part of the papers i sign also say that the family member and his/her children will be able to live there in the house for the rest of their lives until they die if they choose to.
i cannot sell or mortgage the property.
i did not pay anything for the property.
the property is worth around $190000.
will i have to pay the irs for the acquisition of such property now? is this considered income? or only if i sell the house, will i have to pay taxes to the irs? the person said to me that they will pay any property taxes that i would have to pay.
i will not live on the property and the family member will live there is part of the deal.
i did this deal a few years ago, in return for a financial favor.
- BobbieLv 78 years agoBest Answer
The qualified receiver of a qualified gift would not be required to report the amount on the 1040 federal income tax return and would not be required to pay any income taxes on the amount of any qualified gift by the IRS rules for this purpose.
The GIFT TAX is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.
The gift tax applies to the transfer by gift of any property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift.
From a qualified married couple when they both agree to any qualified married couple of each you each separately would equal to $52, 000 per family that the family receiving the amount free of income tax would not be required to report on the 1010 income tax return for the tax year.
Each qualified gift giver is entitled to the annual exclusion amount on the gift to each gift receiver. One gift giver can give to each one qualified gift receiver this $13,000 amount (effective on or after January 1, 2009). That is the 13000 exclusion amount for each giver to each gift receiver for the tax year 2011 unless the law would change before December 31 2011.
So the tax free exclusion amount could go as high as 13000 for the tax year for each qualified gift receiver.
Use the search box at the www.irs.gov website for Frequently Asked Questions on Gift Taxes
Hope that you find the above enclosed information useful. 10/08/2011
- JacquelineLv 44 years ago
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- JudyLv 78 years ago
You won't pay the IRS anything now. The giver should have filed a gift tax return for the year it was given, but probably wouldn't owe a gift tax.
You'll need to know what their basis was if you ever sell the property.
- troLv 78 years ago
if you are talking about a quit claim deed, the property will be in your name, you will receive the property tax bill and yes, if and when you sell it, you will need to know the basis of the property at the time it was quit claimed to you and selling will be a cap gain very likely since you will have never resided in it as your domicile
this must be another legal contract they are offering you and it puzzles me what their intention is
they can just name you as the heir in their will to receive the property
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- Larry ELv 78 years ago
You will have to pay gift taxes when it's signed over to you.. Don't do it.
I helped my daughter buy a place and she paid for it but it's in my name. I want to sign it over to her and can't because the IRS will tax the hell out of her. If you want to listen to these know it all's go ahead but just wait until tax time when you get nailed for it. There is no way the IRS is going to let you get something for nothing.I have already checked into it. If you allready did it you are in trouble for tax evasion. They will catch up with you, it's just a matter of when.Source(s): dit