Could there be Tax Liabilites?

[warkingroy]

What is the name of your state (only U.S. law)? New York
My girlfriend and her son are both on a Deed to their condo; she is on the mortgage by herself.
Her son will be refinancing the mortgage, which will then be in his and his wife's names. My girlfriend will also be removing herself from the Deed, and her daughter-in-law will probably replace her on the Deed.
My girlfriend has moved out of the condo, and wishes her son and his wife to own it.
Will these actions incur any Tax Liabilities for her or her son, now or in the future? If so, how can they structure these actions so as to avoid such liabilites?

 

[FlyingRon]

If I understand it, mom is giving the son the property in exchange for him refinancing it to get mom off the mortgage and mom is taking no money out of this. If so, there's no tax liability (depending on just what is going on there may be some reporting that's necessary). I'd recommend a lawyer to prepare the deeds and handle the settlement of the loans. I always recommend owner's title insurance as well.

 

[ShyCat]

Any individual can gift up to $13,000 per year to a person (with no limit on the number of people). Gifts over the $13,000 per person annual limit must be reported to the IRS on a gift tax return. The lifetime exclusion is $1,000,000, so no actual tax is due until the aggregate is over $1,000,000. The reported amounts also reduce that person's estate exclusion amount (currently $3,500,000). If the FMV of your girlfriend's share of the condo is greater than $26,000 ($13,000 to son, $13,000 to daughter-in-law), she'll need to file a gift tax return for the remainder being gifted.