Q: My parents would like to gift us their extra vacant lot. How do we go about this to avoid any taxes if possible? The value for tax purposes is $9,000.00
A: There would be no taxes owed if the gift is valued at less than $12,000. Since this is land, you may want to have an appraisalAn Appraisal is the opinion of an appraiser, who estimates the value of a home at a specific pointA Point is one percent of a loan amount. in time for the purpose of financing or refinancing a home., so you can prove (if necessary) the value to the IRS. After that, they can use a Quit Claim DeedA Quit Claim Deed is a deed that operates to release any interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. in a property that a person may have, without a representation that he or she actually has a right in that property. For example, Sally may use a quit claim deed to grant Bill her interest in the White House, in Washington, DC, although she may not actually own, or have any rights to, that particular house.. I sell one on ThinkGlink.com (check out the ThinkGlink store) or you can buy one in a local stationary store.
Published: Oct 15, 2006
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