Gift Tax return

[rfk]

I would like a definitive answer/help about gifts (present interest) that are made by parent to son. The property is a rental (in CA) that was valued at $165,000. I know that the donor should file a form 709 along with his 1040, so that the statue of limitations is set forth. But is there a reason not to file a form 709? Most important is that the SOL clock starts ticking. Please provide any opinions/knowledge.

Thank you for your help.

Ray

[Snaggletooth]

More info

What is this thing? A rental apartment, house, rental contract, ??? I don't think this affects the answer to your question, because the above answers are not likely to render the gift under the threshhold. I can't think a single reason not to file, or any way to avoid the requirement.

Also I hope others will respond as I am quite weak in this area. I thought it was a good question and noticed it had not received a response.

[Bees Knees]

The reason you file a 709 is because the rules say to file the 709 for a completed gift. A present interest in real estate given to a son is a completed gift.

The reason not to file a 709 is because the taxpayer is too lazy, or doesn’t want to pay the cost of having a 709 filed.

Those are your two choices. Follow the rules, or don’t follow the rules.

[Unregistered]

Gift tax returns

Also, check to see if you need to prepare a state gift tax return. Whereas nothing should be due on the Federal return, it's possible that state taxes will be due on the gift.