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Tax Law (Questions About Taxes)/quit claim deed and tax ramifications
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Question
My mother passed away in March in Florida and left her home to me (living in CA). When her will was done 10+ years ago it was assumed that my father would pass first. Well he is still very much alive and they were happily married and living in the home where he still resides. I am in the process of quit claiming the home back to my father but am concerned of tax issues for myself. Is there another way do do this. Bottom line is I want my father to have the house and then upon his death it will come back to me thru his estate (in process) Don't want tax and money hassles. Please help.
Diana,
Thanks for your question.
When you deed the house to your Dad, that will constitute a gift. You are allowed an annual exclusion of $13,000 per person. Any amount in excess of this is a taxable gift. However, there is a $1,000,000 lifetime exemption above the annual exclusion so it is likely no tax would be due. A gift tax return, Form 709 must be filed, however.
Gifts are not taxable income, so there are no tax issues for him.
Hope this helps.
John Stancil, CPA
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John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 35 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com. Prepare and file your own taxes at www.1040stancilcpa.com
Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CGMA, and CFM. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 30 years and have taught accounting and tax at the college level for over 30 years.
Organizations
AICPA, FICPA, IMA, NATP
Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly.
Education/Credentials
DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
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