Han <nobody[at]nospam.not> wrote:
- quote -

Yes, that can work sometimes. The drawback is that the property would
have to be reappraised every year, and there's a cost to that. The
property would probably go up in value over time, so it would take more
time to transfer the entire amount.

On the other hand they won't have to worry about imputed interest if
they do it that way.

Stu

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swreid5[at]aol.com wrote in news:e8260215-be89-45fa-90af-78869aac2284
[at]x41g2000hsb.googlegroups.com:

- quote -

invest (part of) the proceeds in a new property (chosen by the family?) and
then gift the property in stages to them? Another part of the proceeds of
the sale could be a direct monetary gift to help them pay their debts.


--
Best regards
Han
email address is invalid

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"Gil Faver" <rowdy'sboss[at]xxyz.com> wrote:

- quote -

With the money she was given, because it can't have gone into the
property if her name wasn't on it somehow.

Stu

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- quote -

or the daughter could start paying rent.

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kastnna <kastnna[at]auburnalum.org> wrote:
- quote -

You're right, it can't be a sham. The daughter would have to be the
actual recipient. If the gift is of title to real property the
daughter should be listed on the deed. If it's of cash, the daughter
(over 21 as OP said) would have to have the money put into her own
name.

Stu

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On Jun 18, 1:11*pm, Stuart Bronstein <spamt...[at]lexregia.com> wrote:

- quote -

But are the two parents going to use the daughter's money to pay-off
THEIR bills and buy THEIR house? That's kind of what it sounds like,
but I could be incorrect (and I think this may be what Joe was getting
at).

How does that benefit the daughter? Will the daughter have ownership
in the home?

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On Jun 18, 1:50*pm, joetaxpayer <joetaxpa...[at]nospam.com> wrote:
- quote -

My daughter is not a minor, that may help, and yes, I do have a
wonderful father-in-law, I just want to make sure that there is no
unfair burden on him. Thank you everyone so far for you help, I
really do appreciate it!

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Stuart Bronstein wrote:
- quote -

I stand corrected, sorry I'll go stand in my corner again...

--

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"removeps-groups[at]yahoo.com" <removeps-groups[at]yahoo.com> wrote:
- quote -

Yes. But not only will no tax be due, no tax will be incurred.

Stu

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On Jun 18, 10:41*am, Stuart Bronstein <spamt...[at]lexregia.com> wrote:

- quote -

But in this case, is a gift tax return required to authorize the gift
splitting, though no gift tax will be due?

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joetaxpayer <joetaxpayer[at]nospam.com> wrote:
- quote -

If the daughter's a minor the parents can accept the gift on her
behalf, as long as they keep it for her and manage it prudently. It
would be best to have it in the name of a Uniform Gifts to Minors Act
trust, but it may not be necessary, probably depending on local state
law.

No, this has nothing to do with giving a gift to one person and having
that person gift it to another. This is one person making three
separate gifts. And if he's married, two people are treated as each
making three separate gifts.

Stu

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Stuart Bronstein wrote:

- quote -

Any complication or warning regarding the daughter? If she is a minor,
can the parents still accept that money and put it into the house, or
pay debts? As minor, does that daughter even have the legal right to
pass the gift along? And if she's an adult, isn't this the same question
we debated some time back? That you can't prearrange passing this kind
of money around?

Joe

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dpb <none[at]non.net> wrote:
- quote -

No, that's absolutely incorrect. Even if all the property is owned by
one of the spouses, they can elect to treat it as if it came from each
equally. See IRC §2513.

Stu

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Stuart Bronstein wrote:
....
- quote -

Just for some additional clarification to OP...

That's also assuming the assets to be disposed of are in joint ownership
w/ his wife, of course, since the limit is $12K/year per person (both
donor and donee).

--

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swreid5[at]aol.com posted:

- quote -

On the contrary: a _gift_ is never taxable to the recipient! You, your
husband and your daughter will never have to declare any income for a
bona fide gift!

Now, your father-in-law has a different issue. He is free to give you,
your husband and your daughter _each_ $12,000 this year, and will face
no tax consequences whatsoever; _but_, when he tops the $12,000 limit,
there are issues that involve reports to the IRS, and consequences for
his estate.

These problems can be mitigated by spreading the gifts out over two
years (which would create a combined 2-year total of $72,000 that would
not require any reports) ... and there are also ways to "loan" the three
of you the difference between the original $36,000 that is not
reportable -- and the $90,000, which he _wants_ to give you, in total.

However, my advice would be that he consult with a professional tax
advisor, to make sure he sets the gifts up in such a way that he doesn't
run afoul of IRS regulations or the law.

You're lucky to have such a nice father-in-law; and you certainly
wouldn't want him to get in trouble, when he's just trying to be nice.

Bill

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swreid5[at]aol.com wrote:

- quote -

If your father-in-law is married, he can give the three of you a total
of $72,000 without incurring any gift tax. One approach would be for
him to give you that much this year, and the balance on or after
January 1.

In any case, a gift tax will be incurred, but it's likely that no gift
tax will actually be owed yet. There is a lifetime exemption of
$1,000,000, and no tax is actually required to be paid until taxable
gifts exceed that amount.

Taxable gifts do get added back to a person's estate for estate tax
purposes after he dies, less gift tax paid.

Stu

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My father-in-law is selling property and wants to give me, my husband
and daughter around $90,000 to $120,000 towards paying off bills and
buying a new home. I know that there will be tax required for him and
us, but what is the best way to go when handling this?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >