Gift tax

[jtwallace]

What is the name of your state? Florida. What means are available to lower the gift tax when a parent gives a $117k building lot to her child and the child's spouse? There have been no previous gifts. Would it be wise for the parent to retain ownership until death when it would pass to the child even though the child wished to build on the lot now? Thanks.

 

[LdiJ]

What is the name of your state? Florida. What means are available to lower the gift tax when a parent gives a $117k building lot to her child and the child's spouse? There have been no previous gifts. Would it be wise for the parent to retain ownership until death when it would pass to the child even though the child wished to build on the lot now? Thanks.

There may not BE any gift tax. The parent (the gifter) would be required to file a gift tax return, however there would be no actual tax due unless the parent had already used up their full lifetime exclusion for gifting...which is at least 1 million.

However there are other issues that should be considered in making that kind of gift.....in the event that the parent's child and their spouse ever divorce.

 

[xylene]

What means are available to lower the gift tax when a parent gives a $117k building lot to her child and the child's spouse?

The means availible to do any of them include a competent tax attorney who has a thorough understanding of the financial siutation of all involved, a certified financial planner with a solid reputation, an estate planner, or better still all three.

 

[jtwallace]

Wow! To pay all of them we may as well pay the tax!

 

[Snipes5]

We've been trying to tell you that there probably won't BE any tax. Just a return that will need to be filed.

Snipes