Adding dependents to accounts

[Lykele]

What is the name of your state?What is the name of your state?
New York

Could you tell me the tax consequences of having my parents add me to their bank accounts and/or deed to the house.

Thanks.

 

[seniorjudge]

What is the name of your state?What is the name of your state?
New York

Could you tell me the tax consequences of having my parents add me to their bank accounts and/or deed to the house.

Thanks.

Facts?

Figures?

Details?

 

[LdiJ]

What is the name of your state?What is the name of your state?
New York

Could you tell me the tax consequences of having my parents add me to their bank accounts and/or deed to the house.

Thanks.

There would be none for you. For your parents, it would likely require them to file a gift tax return, although they may not have to actually pay gift tax.

 

[ShyCat]

Besides the gift tax mentioned by the previous replies, another tax consequence is that you "inherit" your parents' cost basis for the gifted property, likely increasing any capital gains received upon selling that property. You do not receive a stepped up basis like you do when you inherit the property.

Although not tax related, you and your parents need to remember that if you are a joint owner of any property, that property may be liened or seized to pay any judgments against you (e.g., credit problems, personal injury lawsuits, etc.). Your parents should be warned of the risks before proceeding.