Results 1 to 4 of 4

Hybrid View

  1. #1
    Join Date
    Jan 2014
    Posts
    1

    Default Taxes on a Gift of Family Property From My Parents

    My question involves estate proceedings in the state of: Parents

    A property is being given to me by my father with clear title in state of NC

    Ive lived at this residence for several years. It is not my parents residence

    Is capital gains or other taxes owed? (

    Capital gains on any profit I make if I sell it later?

    Strategies, ideas, non-issues

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Am Being Gifted Family Property from Parents

    Capiltal gains is not due until you sell the property. At which point you will have the basis of whatever your father's was.\
    That is, if he paid $30,000 for it and you sell it for $300,000, you owe tax on $270,000 .. NOT the value when it was given to you.
    (There's more to basis than that, but that's roughly what you're looking at.

    Most likely a gift tax report will need to be filed, but unless your father's estate is huge, there's not going to be a tax due.

    If you were to inherit the property on death, the basis would step up to the value at the time of your father's death.

    Your father should be very careful about giving away assets if he may need medicaid services.

    NC repealed their estate/inheritance/gift taxes.

  3. #3
    Join Date
    Mar 2009
    Location
    Michigan
    Posts
    6,808

    Default Re: Am Being Gifted Family Property from Parents

    "Your father should be very careful about giving away assets if he may need medicaid services." flyingron.

    I was just about to say the same thing.

    If your dad is old enough to even think of needing Medicaid...seriously...even a $20 bill tucked into a Christmas or Birthday card can cost him benefits. Medicaid WILL want ALL bank statements for the past 5 years upon application. And they will question where every penny went. He cannot even donate a quarter or a blanket if he's facing any chance of Medicaid. Because that is giving away assets that they want to use to pay for his care. A nursing home is easily $5,000+ per month.

    There are a LOT of precautions you need to take too. Example: My grandmother needed a new stove. I had the only credit card in the household, so I went out, got brochures, printed out stuff from the internet. She chose her stove. I used my credit card. She wrote a check for the exact amount to ME. Guess what? I needed a lawyer to get me off on CRIMINAL CHARGES for taking "Financial Advantage of a Senior". Had the written that check to my Mastercard...it would not have been an issue.

    Before you take a dime or the property...you would be best advised for both you and your dad (and any other family) to consult an Elder Care/Family Care attorney in your area.

  4. #4
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: Am Being Gifted Family Property from Parents

    I hope this is not being done as an estate planning mechanism. Why not consider dad putting the property into a trust and let you use it as you wish, and when he's gone you can inherit the property and receive stepped-up basis?

    1. Sponsored Links
       

Similar Threads

  1. Ownership Rights: Can My Parents Claim a Gift to Me is Their Property
    By joshlr in forum Personal Property
    Replies: 2
    Last Post: 05-21-2013, 06:34 AM
  2. Federal Taxes: How Does a Gift Transfer or Partial Gift Transfer of Property Work
    By Mountaintopcat in forum Tax Law
    Replies: 3
    Last Post: 08-09-2011, 10:02 PM
  3. Purchase Contracts: Should You Sell a House or Give it as a Gift to Family
    By kkc2007 in forum Buying, Selling and Conveying Real Estate
    Replies: 3
    Last Post: 02-06-2009, 05:34 PM
  4. Avoiding Taxes - Homestead, Inheritance or Gift
    By speedlabel in forum Estate Planning, Administration and Probate
    Replies: 2
    Last Post: 01-29-2009, 08:49 PM
  5. Gift Taxes for Property Transfer Title With Life Estate
    By Trying2DoRight in forum Tax Law
    Replies: 10
    Last Post: 09-19-2008, 05:54 PM
 
 
Sponsored Links

Legal Help, Information and Resources