QUESTION
What taxes do I have to pay if I want to gift my son my land? How?
Asked on Jun 16th, 2015 on Taxation - California
More details to this question:
I'm planning on giving my son some land to built a house on. Is there taxes to be paid on the giving of some land?
3 ANSWERS
There will be no taxes unless the land is extremely valuable (more than $5 million). Depending on the value of the land, you might need to file a gift tax return, but no gift taxes will be due.
Answered on Jun 17th, 2015 at 7:56 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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It depends on how much land. You can give tax free gifts under the annual gift exclusion of $14,000 per year per beneficiary (so if it's two married couples - Dad gives Son $14,000, Dad gives Daughter-in-law $14,000, Mom gives Son $14,000, Mom gives Daughter-in-law $14,000 for a total of $56,000 a year). In additional there is a lifetime exemption that total $5,430,000 for all gifts over the annual exclusion to all beneficiaries. So unless you're thinking of giving him more than 100,000 acres of Montana pasture, 1,000 acres of Ohio farmland or 1/10th of an acre in Manhattan; you can probably do with without incurring any gift taxes.
Answered on Jun 17th, 2015 at 4:54 AM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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If the land is worth more than $14,000 you will need to file a gift tax return. If you have not been required to file a gift tax return in the past, then you will owe no tax unless its value is greater than $5.43 million
Answered on Jun 16th, 2015 at 4:53 PM