Transferring a deed to a child

[Sam K]

What is the name of your state? NY

Property is located in PA, but people live in NY

If a parent wants to transfer deeded land to a child, does the child have pay tax on the change in value of property since it was purchased 35 years ago?

Thanks,
Sam

 

[seniorjudge]

Q: If a parent wants to transfer deeded land to a child, does the child have pay tax on the change in value of property since it was purchased 35 years ago?

A: Yes.

 

[FlyingRon]

If a parent wants to transfer deeded land to a child, does the child have pay tax on the change in value of property since it was purchased 35 years ago?

When the child sells it they do.

They owe the difference between the parents basis (what they parents paid) and what it sells for (less any capital improvements, etc.).

Now if the child inherits the property, the basis gets stepped up to the value at the time of the parent's death.

 

[nextwife]

What is the name of your state? NY

Property is located in PA, but people live in NY

If a parent wants to transfer deeded land to a child, does the child have pay tax on the change in value of property since it was purchased 35 years ago?

Thanks,
Sam

It is a VERY bad idea to put a minor in title. They cannot deed out until majority, so you are stuck, unable to sell if you need to.