Transferring Real Estate to Family
The Pitfalls of
Gifting
Real Estate
to Family Members
Transferring real estate to family can certainly be meaningful, and even beneficial in some situations, but there are downsides that you may not be aware of. Even if you charge a token amount for the real estate, $1 for example, if that amount is lower than the actual value of the property, the recipient may face unintended tax consequences. Other impacts, such as current and future access to Medicaid benefits and additional inadvertent outcomes could occur as well.
Trusted
Legal Representation to
Navigate
Inter-Family Real Estate Transactions
When you call Luschas & Naparsteck, LLP to handle your real estate transaction, you have a team of experts working for you to make sure that the transfer is done in a way that avoids unpleasant consequences. We’ll guide you through the process using strategies to minimize tax liability for the recipient, so that your property passes to the family member you intended without unintended ramifications.
Gifting A Home to a Child
Understanding the Tax Implications of
Gifting
Real Estate to Your Child
The transfer of real estate to your child is generally considered a gift for tax purposes. Depending on the value of the property and other factors, the gift may be subject to gift taxes. However, there are certain exemptions and exclusions available that may allow you to avoid or minimize gift tax liabilities, such as the annual gift tax exclusion and the lifetime gift tax exemption. We’ll help you understand the potential gift tax implications of the transfer and explore strategies for minimizing tax liabilities.
If the property has appreciated in value since you purchased it, your child could be subject to capital gains taxes on the difference between the sale price and your original purchase price. It’s important to consider the potential capital gains tax consequences of the transfer and to explore tax planning strategies and methods to structure the transfer to minimize capital gains taxes.
Make sure your property and your loved ones are protected. Let our expert legal team take care of your family real estate transfer so that your children are not burdened with unexpected tax liabilities.