Nothing like seeking free legal advice from complete strangers! Thought I'd try here anyways.
Parents are getting quite old, can't get around much anymore.
They have a small place, valued under 50K in Fla they want to
sell, and distribute the dough to us 3 kids, and our kids, where
The question is, is there a way gift taxes can be legally not imposed.
I know if they just hand out a large check to each family, it must be
reported on Fed taxes, but is there a way they can give us the funds out over
several years, not reaching some magic maximum where it all gets taxed
to hell, or does even a small amount per year need to be taxed as income
on that years 1040?
Thanks in advance.
Check FLA laws there is a maximun gift that can be received without being taxed. Depending on how many kids they may need to split it up into annual dispursements....
Most people are concerned with federal income tax rather than state taxes, so check the IRS rules on gifting. I think they can give $11,000 per child per year. (Look here: irs
What you are trying to avoid is gift tax, not income tax. Your parents can give anyone $11,000 per year as a gift without paying a gift tax or filing a gift tax return. Your dad can give you $11k, and your mom can give you $11k.
So, they could give each kid $22k a year without worrying about gift taxes. If they want to give more, they can send my $11k to ...
Seriously, if they want to give more, no problem. Just file a gift tax return and take the amount above the $11k/person out of their lifetime exemption amount. No tax due. Once they hit the lifetime exemption ($1 million or so, depends on the year and the whims of Clowngress), then they have to pay gift tax.
Any decent tax guy can file the tax forms. Shouldn't cost more than a couple hundred bucks.