REAL ESTATE TRANSFERS
Gifts of property to children, grandchildren or parents, preserving existing real estate taxes; transfers to trusts
Want to make a gift of personal property or real estate to a family member? If you merely make the gift or transfer title without taking the proper actions, you may be facing gift taxes, increased property taxes or the potential loss of the increased basis in property, resulting in higher capital gains taxes.
You need to take the proper actions to gift property to a child or grandchild and prevent a reassessment in real estate taxes. With gift taxes currently at 40% of the value of the gift that exceeds $15,000 you need to seek the guidance of a legal and tax professional to know what exemptions and requirements are needed to avoid or reduce these taxes. Proper appraisals and forms are required that can preserve your current real estate tax rates and avoid gift taxes.