property value

[MissGhia]

Hello,

I wanted to know how do I find out how much our property is worth. We are actually transfering it through a quick claim deed, and wish to know how to avoid gift-taxes. I there an easy way to find out without an appraiser. We bought it in 2000 for $165.

 

[loku]

The safest way is with an appraiser. However, what the IRS is looking for is the true market value of the property, so if you have evidence of what similar property in the neighborhood is selling for, that is evidence of the value of yours. For example, if you bought it is 2000 for $165K, and you find that in general real estate values in the neighborhood have gone up 10% since then, the property would be worth $165K plus $16.5K. Maybe you could get a real estate agent in the area to write a note to show her estimate of the increase or decrease in property value since you bought the property. Evidence of the asking price and sales price for other property is good evidence.

However, you really have little problem, because whatever the current value is, there will be no gift-tax because you have a $1,000,000 lifetime exclusion, which you can apply against the gift. If the ”we” you refer to is your spouse, the two of you can elect to join in the gift. In that case, there would be an annual exclusion of $22,000 of the value, and between the two of you, there is a lifetime exclusion of $2,000,000.