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#5
08-11-2003, 09:41 AM
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 Re: Transfer of house and tax implications "Don Rosenberg" <taxoffice[at]rosieea.gccoxmail.com> wrote: - quote - > "Dave Woods, EA" <d.woods[at]verizon.net> wrote:
Don't sweat it. In tax law as you know, there are few> > It is currently taxable. Whether or not the lifetime > > exemption reduces or eliminates any current gift tax is > > another matter and not determinable based on the facts > > provided by the original poster. > You are correct, of course. I should have said that there > may be no tax currently due, depending upon such > circumstances as the donor's prior gifting history and the > value of the current gift. absolutes and blanket assumptions usually come back to bite you. -- David M. Woods, EA Boston, MA 02109 Postings here are general information only and not to be relied upon as advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
08-08-2003, 01:42 AM
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| Re: Transfer of house and tax implications - quote - > > > My 75 year old father wants to transfer his house to my
It is currently taxable. Whether or not the lifetime> > > name. He is worried that if he needs nursing home care one > > > day he will lose all his assets and wants to protect the > > > house. We understand that he cannot file for medicaid > > > benefits for 36 months after the transfer of the house. > > > > > My question is... will the IRS look at the transfer as a > > > gift? > > Well what else would you call it? > > > Since one can only give $11,000 per year to an > > > individual, is the fair market value of the house minus > > > $11,000 taxable? > > Yes. > I don't believe we have a presently taxable event here. > Dad will have to file a gift tax return, and the amount of > the gift that exceeds $11,000 will reduce his estate tax > exclusion accordingly. See Form 709. exemption reduces or eliminates any current gift tax is another matter and not determinable based on the facts provided by the original poster. -- David M. Woods, EA Boston, MA 02109 Postings here are general information only and not to be relied upon as advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
08-07-2003, 06:20 AM
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| Re: Transfer of house and tax implications rodwoodard[at]yahoo.com (rod) wrote: - quote - > My 75 year old father wants to transfer his house to my
Yes, it's a taxable gift. This is a common tactic to protect> name. He is worried that if he needs nursing home care one > day he will lose all his assets and wants to protect the > house. We understand that he cannot file for medicaid > benefits for 36 months after the transfer of the house. > My question is... will the IRS look at the transfer as a > gift? Since one can only give $11,000 per year to an > individual, is the fair market value of the house minus > $11,000 taxable? a home from future Medicaid liens. Part of the tactic is for your father to retain a life estate. This has some advantages: the gift is deferred until his death under the rules for gifts with retained life estate; the value of the transfer for Medicaid purposes is reduced by the value of the life estate; and even if his kids are ingrates, they can't kick him out. The big disadvantage is that it makes the home illiquid: nobody will buy it subject to the life estate, and if he gives up the life estate, he gets income from the sale that is exposed to Medicaid. If you're contemplating doing this, get professional estate planning assistance. This is an easy area to make an expensive mistake in if you don't. -- Chris Green << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
08-07-2003, 06:01 AM
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| Re: Transfer of house and tax implications "rod" <rodwoodard[at]yahoo.com> wrote: - quote - > My 75 year old father wants to transfer his house to my
It is a gift, but that may not matter.> name. He is worried that if he needs nursing home care one > day he will lose all his assets and wants to protect the > house. We understand that he cannot file for medicaid > benefits for 36 months after the transfer of the house. > My question is... will the IRS look at the transfer as a > gift? Since one can only give $11,000 per year to an > individual, is the fair market value of the house minus > $11,000 taxable? > PLEASE help! It is reportable, but may not be taxable. The first $1,010,000 in gifts made by a donor get reported on the gift tax return, but no cash is due to cover the tax - instead the gift tax credit takes care of that. So, if your father's total estate is valued at more than $1,000,000 you could have some tax due that would need to be paid. You really should consult with a qualified gift tax specialist in your area. Gene E. Utterback, EA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
08-07-2003, 05:42 AM
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| Re: Transfer of house and tax implications rodwoodard[at]yahoo.com (rod) writes: - quote - > My 75 year old father wants to transfer his house to my
Much better that I pay for his care, through taxes, than for> name. He is worried that if he needs nursing home care one > day he will lose all his assets and wants to protect the > house. We understand that he cannot file for medicaid > benefits for 36 months after the transfer of the house. him to pay for it with his assets. You need to see a lawyer who specializes in elder issues to make sure you have all the Medicaid considerations covered. Your father may also want to visit some nursing homes in the area and see what differences there are between the lives of Medicaid and paying patients. There are gift tax implications for your father. From your standpoint, you receive the house with his basis. I assume he'll continue to live there and that there's no mortgage on the property. If he continues to pay the property taxes, no one will be able to deduct them since you're liable for the tax, but he's paying it. Phil Marti Topeka, KS << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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08-06-2003, 11:31 AM
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| Re: Transfer of house and tax implications "rod" <rodwoodard[at]yahoo.com> wrote: - quote - > My 75 year old father wants to transfer his house to my
Well what else would you call it?> name. He is worried that if he needs nursing home care one > day he will lose all his assets and wants to protect the > house. We understand that he cannot file for medicaid > benefits for 36 months after the transfer of the house. > My question is... will the IRS look at the transfer as a > gift? - quote - > Since one can only give $11,000 per year to an
Yes.> individual, is the fair market value of the house minus > $11,000 taxable? -- David M. Woods, EA Boston, MA 02109 Postings here are general information only and not to be relied upon as advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
08-05-2003, 09:18 PM
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| Transfer of house and tax implications My 75 year old father wants to transfer his house to my name. He is worried that if he needs nursing home care one day he will lose all his assets and wants to protect the house. We understand that he cannot file for medicaid benefits for 36 months after the transfer of the house. My question is... will the IRS look at the transfer as a gift? Since one can only give $11,000 per year to an individual, is the fair market value of the house minus $11,000 taxable? PLEASE help! << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| house, implications, tax, transfer |
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