I just gave to my house title to my son (21 years old). The title has life estate in it.
Is there is any gift tax do i have to pay? or my son have to pay any tax? I live in California jamie
Yes, but not in portions that exceed your annual exclusion.
If you give someone more than $15,000 per annum (as of 2012), but you can deduct that tax obligation from your lifetime gift tax exclusion.
You don't. If it is above the amount they are allowed to give you GIFT tax free.they pay a gift tax
You can give up to $15,000 to anyone, ever year (in 2012), without incurring any gift tax liability. Gifts to your spouse are completely tax-free.
There is no income tax due on gifts, and there will be no gift tax unless the gift exceeds $12,000 per individual. (A married couple can each give $12,000 - so they could give their son $24,000 and their daugher-in-law $24,000 for a total of $48,000 gifted in each tax year.)
Yes, but not in portions that exceed your annual exclusion.
if you give a relative a used car in michigan,is there a gift tax
No, the recipient NEVER pays gift tax. Gifts are not income and not taxable. However, the person GIVING you the gift may have to pay gift tax on the value of the house that exceeds the annual exclusion of $15,000. They may be better off gifting you a partial ownership over several years, where each part is worth less than $15,000. If the gift is from your spouse, there is no gift tax.
If you give someone more than $15,000 per annum (as of 2012), but you can deduct that tax obligation from your lifetime gift tax exclusion.
No. There is a limit of $12,000 annually for a single person to give away as gift. And if any tax is due on the gift, it is paid by person who makes the gift and not the recipient.
You don't. If it is above the amount they are allowed to give you GIFT tax free.they pay a gift tax
You can give up to $15,000 to anyone, ever year (in 2012), without incurring any gift tax liability. Gifts to your spouse are completely tax-free.
You can give partial ownership over several deeds over as many years as it takes to transfer the entire value using your annual gift tax exclusion ($15,000 in 2012). So, for instance, a $60,000 house could be given 1/4 at a time.
There is no income tax due on gifts, and there will be no gift tax unless the gift exceeds $12,000 per individual. (A married couple can each give $12,000 - so they could give their son $24,000 and their daugher-in-law $24,000 for a total of $48,000 gifted in each tax year.)
No. If there was, it would be dumb to get a gift card in the first place. It would be smarter to just give money.
Gift tax is anything over $12,000. However, if you are married (living together, whatever), you can each receive $12,000 without tax. Actually, the one giving the gift is liable for the tax on it.
Yes, there could very well be a gift tax. Consult a tax attorney. And the estate could pull the property back into the estate if it is within a few years of death.