QUESTION
Do I have to pay tax if I receive my share from my father’s property thru my daughter’s name?
Asked on Sep 19th, 2012 on Taxation - California
More details to this question:
My family sold my father’s property in India and divided the money. The construction company that bought the property paid each of us our share. I received mine in my daughter’s name, which is 18 years old for her college studies.
3 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Perhaps, if there was tax due. What you did was take money due to you and gifted it to your daughter, and you cannot gift what you do not have rights to.
Answered on Sep 24th, 2012 at 1:58 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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Your question is somewhat ambiguous.Did your father die? If he died, and shortly thereafter his property was sold, then probably you would have been entitled to an income tax deduction for your share of the expenses.
Answered on Sep 24th, 2012 at 1:49 PM
Elder Law Attorney serving Hollister, CA
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Charles R. Perry
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You will need to speak to a tax adviser in your area to obtain a definitive answer to your question. It appears, however, that the property was owned by your father, and not by you. In addition, the money you received was essentially a gift from your father to you and/or your daughter. Gifts are generally not considered taxable income under American tax law. Again, your tax adviser will be able to ask questions and obtain more facts to determine whether the money received was indeed a gift and therefore non-taxable under US tax law.
Answered on Sep 20th, 2012 at 12:09 PM