Gift tax rules for real estate transfers

Attorney says transaction could cause major problems

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

DEAR BOB: My husband and I own several investment properties. We plan to transfer a piece of each property to our daughter (20 years old) within a short period of time. What is the best way to transfer the property without having to pay gift tax? Also, what is the gift tax rate on gifts exceeding $10,000? – Janice L. DEAR JANICE: Please consult your tax adviser before you make any transfer. I think you are making a big mistake transferring investment property to a 20-year-old who has not earned it. Such a gift is not very smart and could cause major future problems. Purchase Bob Bruss reports online. You and your husband must file federal gift tax returns for any gifts exceeding $11,000 in a year per donor per donee (husband and wife can each give $11,000 annually to a donee without filing a gift tax return). But no federal gift tax will be owed unless your lifetime gifts above the $11,000 annual limit per donee exceed $1 million per donor. HELPING SON BUY A HOUSE PROVE COSTL...