QUESTION
Will he have to pay gift tax as he will retain cottage as his after I die?
Asked on Jan 24th, 2014 on Taxation - Colorado
More details to this question:
I am building with my money an in law cottage on my son' property where his house is. We are assuming his property tax will increase. The cottage will be in his name, just my money.
3 ANSWERS
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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Unless your lifetime gifts exceed $5.34 million, no tax. But a gift tax return IS required.
Answered on Feb 03rd, 2014 at 4:15 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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It may depend on how the transaction is accounted for. I would suggest you see an estate planning attorney.
Answered on Feb 03rd, 2014 at 3:59 PM
No. Your gift tax exemption along with your present interest gift tax exclusion should adequately cover your contribution. However, do not rely on advice from the internet. Check this out for yourself with you own tax lawyer.
Answered on Feb 03rd, 2014 at 3:28 PM