Gift Tax

What is the name of your state? NY
IF MY PARENTS GIVE ME A HOME VALUED AT 500,000 IS THERE A TAX LIABILITY TO EITHER OF US?THEY ARE OVER 65 AND ARE NOT LOOKING TO DUMP ASSETS,BUT JUST TO GIVE US A GIFT. I THOUGHT THERE WAS AN EXEMPTION OF 1 MILLION DOLLARS IN A LIFETIME. IS THIS TRUE OR IS IT THE 11,000 ?

The exemption is $1.3 million per person over their lifetime, and applies to taxable gifts (more than $11,000 in a year to one recipient) and to their estate when they pass away. There would probably be no consequences for them giving you a house/ They'd just file a form 706 Gift tax Return & reduce the amount of their available credit int he future. However, if they have sufficient assets that they can give you a $500,000 house, they should see a professional estate planner who can help them with a comprehensive gifting plan.