Form 709-Gift Tax

[Bird Legs]

Client, he & wife live in Texas, community property state, buy a house in Florida, a non
community property state.
They quit claim deeded the Florida house to their daughter & husband, who lived in the
FL house, in 2004.
Only the husband signed the Quit Claim Deed. When I asked client about this, he said
that at the signing he was told that wife did not need to sign since it was not a community property state.

Am preparing a gift tax return, form 709, reporting this gift of home.
Do 2 709s' need to be prepared, one for husband & one for wife, donors, reporting 1/2 of
value on each one? Or do you just prepare one and put both donors names on the one?
Have read instructions but my mind does not function properly at times.

[JG EA]

Quit claim

I don't know the answer to your question. And I am not a lawyer and so am not sure about the legal issue of one signature, but I wanted to say that if my husband could sign away property without my signature I would be very, very, upset.

[jainen]

still a part owner

Community property does not mean one for all. Although it is an interest in the entire property, it is separate from the spouse's interest. That means it can be separately sold, given, or bequeathed. The recipient becomes a tenant-in-common with the spouse. Therefore, the kids received a gift of 50% of the property and the mother is still a part owner as the kids will learn when they refinance. Location of the property does not determine who purchased it.