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by CareyBot

DEAR BOB: What are the benefits and tax consequences for transferring title to one of my adult children for a rental property? I bought the property in 1992 for $78,000, converted it to a rental in 1999, and it is currently worth about $288,000. Will I have to pay any gift tax? – Claude R. DEAR CLAUDE: Probably not. Because your real estate gift to your adult child exceeds the $11,000 annual gift tax exemption per donee, you must file a federal gift tax return. But no federal gift tax will be due if you have not given away more than $1 million in non-exempt lifetime gifts. Purchase Bob Bruss reports online. However, you will be creating a capital gain tax problem for your donee. The reason is the donee takes over the donor's adjusted cost basis, which, in your situation, is extrem...