Questions regarding gift of home? Hello Everyone,
I have questions regarding how best to accommodate the gifting of a primary home. Here is the circumstance:
My Mother in Law has lived in her home for 20+ years. She owns it free & clear. She is moving out and wants to gift the home to my Wife and I. We will be moving in to the home as our primary residence.
I understand and am not concerned with basis and future capitol gains tax.
I am concerned about gift tax.
My first step was to contact our attorney (who happens to run a title company & is a judge). He told me that we could simply quit claim the property and there would be no tax consequences for either party as long as she has not reached the $5 million threshold for gifts.
I questioned this answer as I had consulted Google and read some things that were contrary.
So... I called a CPA. She told me the same thing.
I still have reservations.
Can anyone here point me at a definitive answer?
If I follow their advice and later find error in the advice what could the result be?
Thank you for taking the time to answer my questions.
Steve |