You are here:

Tax Law (Questions About Taxes)/Purchasing a condo for son


Am considering purchasing a condo for my son for $32k. I understand that after $12k it is subject to the gift tax. Am confused about the $1,000,000 lifetime exemption. Does that really mean I wouldn't be taxed on the $20k above the $12k? Thx.


Thanks for your question.

Actually you are somewhat behind on the exemption amounts.  The annual exclusion is now $14,000.  If you are married and you son is married you can utilize gift splitting with you giving him 28k and it can be treated as if your wife gave half.  You can do the same with his spouse.  If you elect gift-splitting you must file a gift tax return to make that election.  But no tax in this case.

The lifetime exclusion is now $5,340,000.  Any gift not excluded by the annual exclusion reduces this amount and reduces you estate tax exemption by that amount. Even though no tax is due, in tax terms it is defined as a taxable gift and a gift tax return must be filed.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts


John Stancil, CPA


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 am Professor Emeritus at Florida Southern 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 CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. 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 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2016 All rights reserved.