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Gifted real estate

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  • White.Beard.Doc
    replied
    The advantage of getting it now is you have control over the asset. If you own it and your brother is staying there for free, I wonder if that is simply considered helping family out, or if it is a gift that must be declared if over 15k/year in value.

    The disadvantage of owning it now rather than receiving it as an inheritance is you lose the step up in basis at death. That step up would allow you to sell it with no tax owed upon death of the donor, but this way you will owe taxes on the gain when you sell.

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  • chocolatebear11
    replied
    Originally posted by billy View Post
    I have to ask- how does someone put a building under your name without you knowing about it at the time? were you a minor when he did it?
    I have to see check with the parents again to see if it was gifted in the last few years or I just co-sign during purchase which was over 10 years ago. My thinking is that I signed it during the purchase. My brother and I stayed in-state for professional school and we found a foreclosed condo that our father purchased with the intent of us staying.

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  • billy
    replied
    I have to ask- how does someone put a building under your name without you knowing about it at the time? were you a minor when he did it?

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  • jfoxcpacfp
    replied
    Nice find! If the property has increased in value, your basis is his basis. Your father does need to file a gift tax return but that's his problem, not yours. You need to work on establishing value/basis at the date of gift. If he put it in your name in the bg, that part w/b easy.

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  • Tim
    replied
    https://www.thebalance.com/selling-g...operty-3192977

    I’ll defer on the benefits. You do have some downsides.
    Father has some gift tax reporting.
    You need to document his basis, since it is yours. You might owe capital gains tax when you sell it. If it was a rental property, you may owe the tax on the recapture. You have some potential downsides here, taxes.
    Even if you rent it out, your starting point will be his basis.

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  • chocolatebear11
    started a topic Gifted real estate

    Gifted real estate

    Hi,

    Im in the fortunate situation where my father has put a condominium in my name. He bought it about 10 years ago but just found out it’s in my name. My brother is currently living in it. I plan on leasing it out in a few years when my brother moves out.

    I was wondering if there’s any benefits I can take advantaged of right now in terms of taxes.

    thank you
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