If I pay to purchase a house/property and put my child’s name on it, will this be counted as gifted?
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If I pay to purchase a house/property and put my child’s name on it, will this be counted as gifted?
If I pay to purchase a house/property and put my child’s name on it, will this be
counted as gifted? Will my son responsible for the tax on this.
Asked on July 2, 2017 under Real Estate Law, Minnesota
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Yes: anything of value you give someone, not just money--and so including real estate--is considered a gift. If you put his name on it, you make him owner of it--i.e. you have given or gifted it to him.While you should consult in person with a CPA before making any large gifts or engaging in any large transaction, unless you have already gifted *a lot* or this is a *very* expensive property, you and he should be fine:
* The first $14,000 you gift to anyone each year is under the annual gift limit and you don't need to even fill out a gift return.
* If you gift someone something worth more than $14,000 in a year, you need to fill out a gift tax return for the value over $14,000....BUT there is a lifetime gift exclusion of a little over $5,000,000, which means you can gift at least $5mm over your life without owing any tax on it. So most likely, you will have to fill out a gift tax return, but will not actually owe any tax. (If tax were owed, you, as the giver, would have to pay.)
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