What are the real estate laws/taxes if your parents give you a house they own out right?
Does anyone know the Florida real estate laws regarding giving a house as a gift? Can it be done? If so, what are the tax penalties? My parents own the house that I currently live in. If they wanted to give the house to me as a gift can that be done legally if the house is paid for? Thanks! Thank You the house was purchased in 2005 for $148K. It is probably worth less now because of a serious drop in the local market.
Public Comments
- Your parents can gift the house to you at any time. You would have to file gift taxes with the IRS depending on how much the house is worth - over $1.1 Million - then you may need to pay a gift tax which requires liquid resources. {EDIT} Your parents would have to file gift taxes even though the Feds allow a total of $1.1 Million to be gifted for an entire lifetime - only in $11K portions. Perhaps setting up a trust with you as the beneficiary may be one way to avoid taxes.
- In Michigan, your parents can gift you 10k each without any tax. If you are married, that can be 40k per year. Do it over a period of time and there will be no taxes.
