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Form 709 experts please

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    Form 709 experts please

    I have a married couple who gifted their house (approx value 240k) to their daughter, I'm certainly no expert in this realm and have a few questions...
    1. If they Gift Split in a non community property state, must they both still sign and file separate Gift Tax returns?
    2. They are well under the federal estate filing threshold, are they REQUIRED to have a certified appraisal of the gifted property (versus market value assigned by local tax assessor) if that is the only significant asset gifted?

    Thanks so much in advance!

    #2
    Originally posted by flynfinn
    If they Gift Split in a non community property state, must they both still sign and file separate Gift Tax returns?
    The rules allowing "gift splitting" are the same for people in all states, not just community property states. If they want to treat the house as given to their daughter by each of them, 50-50, then they must each file a gift tax return, F-709. Each spouse must sign the other's return.

    Originally posted by flynfinn
    Are they REQUIRED to have a certified appraisal of the gifted property (versus market value assigned by local tax assessor) if that is the only significant asset gifted?
    No, but an appraisal would be the best evidence of the property's value. Assessed values are often far different from true FMV, and I would never rely on that. If they don't wish to secure an appraisal, they should, at the very least, get a CMA from a reputable realtor in their area.

    * * * * *
    Are the parents still living in the house? If so, did they retain a life estate? If they did, it is still a gift for gift-tax purposes, but the donors can not use their $14,000 exclusions. That exclusion only applies for unconditional gifts.
    Roland Slugg
    "I do what I can."

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      #3
      Originally posted by Roland Slugg View Post
      The rules allowing "gift splitting" are the same for people in all states, not just community property states. If they want to treat the house as given to their daughter by each of them, 50-50, then they must each file a gift tax return, F-709. Each spouse must sign the other's return.

      No, but an appraisal would be the best evidence of the property's value. Assessed values are often far different from true FMV, and I would never rely on that. If they don't wish to secure an appraisal, they should, at the very least, get a CMA from a reputable realtor in their area.

      * * * * *
      Are the parents still living in the house? If so, did they retain a life estate? If they did, it is still a gift for gift-tax purposes, but the donors can not use their $14,000 exclusions. That exclusion only applies for unconditional gifts.
      They are still living there..."renting"it, I would presume the lifetime exclusion would still apply? I do not know whether it is a life estate, the donee daughter is searching for the documents from the attorney.

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