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Property transfer question

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Property transfer question

Postby Stingray » Thu Jun 14, 2018 6:35 am

I have a house that I want to put in my daughters name, for those in the know, how can this be done so she is not taxed ?
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Re: Property transfer question

Postby Snowwolfe » Thu Jun 14, 2018 7:42 am

Simple answer is to change it and you give her the money to pay the tax. That is if you are talking about the annual property tax.
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Re: Property transfer question

Postby Bone Collector » Thu Jun 14, 2018 9:03 am

Snowwolfe wrote:Simple answer is to change it and you give her the money to pay the tax. That is if you are talking about the annual property tax.


I think he is talking about gift tax, etc. You can only give up to a certain value per year, to an individual. This is how our "conservative" lawmakers fall lock step in line with libs, so that we cannot pass wealth and thus have to redistribute it. It is right up there with estate and death taxes, also both total BS.

I'm sorry but I don't know the answer. If you want it in her name now, I would ask a real estate lawyer and i would assume there is a way to do it, because I have seen people switch things over in advance.

I know this is a bit morbid, but if you don't care if it is technically in her name now, name her in your will as getting the house. Let her move in now, and you two figure out how the property taxes will be paid annually until you pass. When that occurs assuming the laws haven't changed, so long as it is under $1M (I think) she doesn't have to pay taxes and the house is her's free and clear, at least that is my understanding.

When my grandfather died, we got his house and sold it as it was in VA. We paid $0 in tax on the proceeds.
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Re: Property transfer question

Postby Kimber45 » Thu Jun 14, 2018 9:32 am

You can sell it to her for any price you want .. $1
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Re: Property transfer question

Postby BMan » Thu Jun 14, 2018 9:34 am

Put the home in a trust with you and she as the members of the trust.
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Re: Property transfer question

Postby MUP » Thu Jun 14, 2018 10:44 am

BMan wrote:Put the home in a trust with you and she as the members of the trust.


Can property/land be put into a trust such as this?
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Re: Property transfer question

Postby Kimber45 » Thu Jun 14, 2018 11:06 am

MUP wrote:
BMan wrote:Put the home in a trust with you and she as the members of the trust.


Can property/land be put into a trust such as this?


Yes... but there needs to be a set plan of transfer too I think. We have a “trust” right now, but once we pay off our property we plan to actively transfer and modify the trust accordingly.
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Re: Property transfer question

Postby mr.big » Thu Jun 14, 2018 12:48 pm

Granny and Grandpa put everything in Momma`s name years ago,,,mainly so the rest home couldnt take it if they had to go there,,the way I remember it the property has to be in the kids name 7 years before it shelters the property from the resthomes and the IRS,,

they both wound up in assisted living for about a year before they died and momma got 100% of the property free and clear,but it had been in her name close to 20 years.

she is doing the paperwork to get it listed as a Century Farm as it has been coming straight down the line generation to generation way over 100 years
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Re: Property transfer question

Postby MUP » Thu Jun 14, 2018 1:07 pm

What are the details of having it listed as a Century Farm Mr. Big? Our property has come down thru the generations of my family since the mid 1800's.
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Re: Property transfer question

Postby fairchaser » Thu Jun 14, 2018 1:12 pm

You can see from reading all the different options and answers above that you need to hire a trusted attorney or risk doing something you may regret later. It could save you a lot of grief and give you peace of mind.
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Re: Property transfer question

Postby Kimber45 » Thu Jun 14, 2018 1:35 pm

fairchaser wrote:You can see from reading all the different options and answers above that you need to hire a trusted attorney or risk doing something you may regret later. It could save you a lot of grief and give you peace of mind.


Agree..

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Re: Property transfer question

Postby muddyboots » Thu Jun 14, 2018 1:36 pm

My mom just did this with me in her house. I was told only way to avoid any income tax is to wait and do it as inheritance. If you do it now the tax is only owed when it’s sold and tax will only be owed on the selling price minus what the house is worth today minus what improvements tha are done from now until time of sell.
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Re: Property transfer question

Postby Scud » Thu Jun 14, 2018 8:14 pm

You need to talk to a CPA and this is coming from a CPA. (I don’t do taxes) Too many variables for a simple answer but it can be done. If you hold the property until your death and will the property to your daughter, her basis in the property is the value at the time of death. If you transfer before death her basis in the property is the value that you paid for it plus improvements. So when/if she sells the property at a future time, it can make huge difference in her capital gains taxes. Also the current estate tax exemption is $5.6 million so if your estate is less than that there won’t be any “death taxes”.
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Re: Property transfer question

Postby Poor redneck » Thu Jun 14, 2018 8:30 pm

My mom and dad both (divorced for many years), have themselves and me on every title-deed by right of survivorship. They just added me along the way with paperwork. Don't know if that's good or bad, cross that bridge when I come to it.
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Re: Property transfer question

Postby Jon54 » Thu Jun 14, 2018 10:16 pm

One way to do it is give a portion of the appraised value to her equal to the gift tax exemption which is something north of $11k per year. The problem with this plan is complicated to a layperson. Her “basis” in the land is your basis and should she sell it, she’ll have a large tax cost unless this is her personal residence.

If she inherits the property upon your passing, her basis for tax purposes is the value at the date of your death.

For my mother in law, we set up a trust and she contributed her home to the trust. We did this for two reasons. First, it helped her qualify for VA benefits since my father in law was in the army during Korea conflict. Second, assuming the transfer is made after 60 months from her claiming for Medicare benefits for nursing home care, the property is protected.

I just retired as a CPA but my specialty also wasn’t in tax. I know enough to be “danergerous”. I’m more than happy to help. Send me a pm and I’ll share my email and cell phone #.
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