Form 709

[bekzm]

Husband & wife deeded house over to 3 daughters. Do I fill out the form 709 since it was valued at $100,000? And if so - mark box 12 for the gifts by husband & wife since they are still alive as giving the gift. Then do I just fill out the top part on page 2 and nothing else. I thought a house was joint tenancy and don't have to split it but just the 3 ways.
Help

[bekzm]

Why

Ok - been reading - so why am I filing a gift tax if the parents still live in house. They just did a general warranty deed to the 3 dtrs in consideration of the sum of $10 - so I don't need to do a gift tax on a mom/dad putting dtrs on deed - yes/no. So confused.
Help

[Bees Knees]

I assume the house is worth more than $10.

If so, the difference is a gift and requires the filing of a gift tax return, even if mom and dad still live in the house.

As to why? Because those are the rules Congress decided should apply.

[ChEAr$]

And don't forget

that in addition to reporting FMV of house, basis is also reported.

[bekzm]

Thanks

Thanks for the advice and thought it was that way till saw another posting and got me confused. So doing the gift tax - to I do 2 of them for split or answer the question yes for line 12 - consent to have the gifts as made 1/2 of each of you - yes and fill in wifes name or does a house already applied to the split since joint tendancy. Then have to split the $100,000 3 ways 2 times???? Wow - why me...but learning alot and hope to keep learning - great teachers out there also.
Thanks

[Bees Knees]

Yes, you can do the gift splitting between husband and wife. With 3 daughters, gift splitting allows the $12,000 annual exclusion to be used 6 times.

[VT-EA]

Complete gift?

Is there a complete gift here? Mom and Dad seem to have kept a life estate.

[Bees Knees]

Is there a complete gift here? Mom and Dad seem to have kept a life estate.

When you put someone else on the title to your real estate, even when you remain a joint owner or retain life estate, it is a completed gift. If it were a joint bank account, it would not be a completed gift until the joint tenant withdraws cash. See TTB, page 21-24.