Gifting the family farm

My In-laws want to give my wife and I their second home. This property includes 5 acres and 4 large outbuilding. and was recently accessed at 76,000 dollars. It is located in Wisconsin. We need to know how it can be done with out paying massive taxes, neiter parties want this tax burden right now. Can this be done with out paying any taxes? You should know that they own the property outright, they paid the morgage off years ago. Please Help!

Good news. The gift can be made tax-free. There is no income tax on a gift, either to the donor or the recipient.

There is gift tax; however every American gets a credit against federal Estate and Gift Taxes of $192,800 which is equivalent to transferring $625,000 tax-free. And, if the donor is married, the spouse (if an American) also can use the $625,000, so that your in-laws may, as a couple, give $1.2 million to you free of Estate or Gift Tax. The following link will bring you to the discussion of this exemption in the Free Advice material on Gift Tax: https://law.freeadvice.com/tax_law/gift_tax_law/unified_estate_gift_tax.htm.

There is also an annual credit of $10,000 per donor for each gift given to each donee, so that your in-laws can give you and your wife $40,000 gift-tax free every year. What this means is that they will only use $152,000 ($192,800 less $40,000 ) of the lifetime exclusion.

However, be sure the transfer is a gift.