Gift real estate, save on taxes

Tax relief depends on donor's history of giving

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

Editor's note: Robert Bruss is temporarily away and will return next week. The following column from Bruss' "Best of" collection first appeared Sunday, June 25, 2006. DEAR BOB: My son and his wife live in a free-and-clear house that I own. He pays utilities and maintains the property. He proposes I add both their names to the title so that in 24 months we can sell the property and he would then purchase -- in his name only -- a more expensive home. My son says no tax will be due on such a sale under that $500,000 tax exemption rule you often discuss, and the sale isn't even reportable to the Internal Revenue Service. I realize I would be passing on the value of the home to him, but I am not confident of the tax situation. Is he correct? --James S. DEAR JAMES: When you gift the house to your son and his wife, that event requires you to file a federal gift tax return. However, no gift tax will be due if your total lifetime gifts exceeding the annual $12,000 per g...