Gift tax rules for real estate transfers

Attorney says transaction could cause major problems

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

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...