QUESTION
You mention that adding a joint tenant affects gift taxes because it is a gift to the added owner. How is the value of the gift determined?
Asked on Feb 27th, 2017 on Wills and Probate - Hawaii
More details to this question:
If I add one joint tenant, would the value of the gift be 50% or if I add 3 joint tenants, would the value the 25%?
1 ANSWER
Maryellen Sullivan
You are correct as to the value of the gift. Gifts of over $14,00 per person per year must be reported to the IRS, but are not subject to taxation until you have given more than the federal gift tax exemption amount, which is currently $5.49 million.
Answered on Mar 13th, 2017 at 12:28 PM