If a married couple sign over the deed to the house as a gift then can you split the 709 basis for each parent to the 3 girls that the deed is in there name. Say the house was valued at $100k - can each parent split it for $50k for each of the girls - line 12 ask the question do you consent 1/2 mad by each of you. I think it can be done but is it wise to do it that way? If so - do you make out 2 - 709. When you answer that question - then 2nd page part 1 wants the split between them - but is it better to split 1/2 house basis or what. Can anyone help in what to do when it is a mother/father gifting a house to 3 dtrs to what is the best way to split it or not to split it?Thanks
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Split gift
I just did one Friday. very similar. The 709 changed 2 or 3 years ago to where you had to do a separate return for each person giving the gift instead of being able to do a joint form for married couples. The property is owned jointly, so you have to do a 709 for each and list all the recipients on each one. 1/2 the basis and 1/2 the FMV goes to each. Be sure to list the spouse in the appropriate section and mark that they agree to the split. Soo the $100,000 house is split $50,000 , then each recipient gets $16,667. Remember the basis of the gift is the basis in the hands for the parents.AJ, EA -
Thank you
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