Gift Tax Content Index - Page 1

A gift tax is a tax levied by the federal government, and in some cases states, on assets transferred from one person to another. The tax requirements could vary greatly in different situations, so it is always wise to consult with a real estate or tax attorney. Look here for some information on gift taxes and what you need to know.

**Investment Property Short Sale Generates Phantom Income** When an investment property is sold as a short sale, it generates what is known as "phantom income." The IRS looks at the difference between what the property is worth and what your sold it for in the short sale as income. You should receive a 1099 for the phantom income generated by the short sale of the investment property.

**$8,000 First Time Home Buyer Tax Credit To Be Extended and Expanded** First time home buyers and others can celebrate soon. There's movement to extend and expand the first time home buyer tax credit. But wait, there's more. The new and improved home buyer's tax credit will be expanded to include higher income earners and existing home owners. The fragile real estate may have hit a jackpot as the expanded and improved tax credit was surely supported by the real estate industry and residential mortgage brokers. It's the new and improved home buyer tax credit.

**$8,000 First Time Home Buyer Tax Credit: Buying A Partially Inherited Home** The first time home buyer has restrictions on income. The first time home buyer tax credit requires you to live in the home for 3 years. Also, you can't have owned a home for the last 36 months. In addition, the first time home buyer tax credit has restrictions on who can sell you the home. If you are buying a home from a close relative, you won't qualify for the tax credit. But what if you inherit the home?

**Gift Tax Limits And The Purchase Of A Home** If you are a parent and want to assist your child in the purchase of a home, you may want to give your kid a gift. But if that gift consists in the entire value of the home, you may have gift tax limits and federal gift tax consequences to deal with. While you should still be able to give the gift and will have gift tax consequences, your child will still be able to purchase a home with your gift.

**Transferring Home To Children When You Co-Own The Home With Them** Many parents want to transfer their home to their children during their lifetime, rather than wait until they have died and transfer the property by will. In some cases, transferring a home to a child when the parent is living may be a mistake. In other cases, if the planning is done right, the parent can get his or her wish of having the home pass on to the child during his or her lifetime without adverse tax consequences for the parent. When you co-own a home with your children, you need to be extra careful in the way you transfer your interest to them.

**$8,000 First Time Home Buyer Tax Credit Has Time Requirement** Most people know that the $8,000 first time home buyer tax credit will expire at the end of the day on November 30, 2009. Most people know that the $8,000 first time home buyer tax credit is only for home buyers that have not owned a home during the p3 years prior to the date of the home purchase and have an income below $75,000, if single, or $150,000, if married. They also might know that the first time home buyer credit can't be taken if your income is above those amounts (it phases out), or if you buy a home from a close relative. Now we get a question from a reader that wants to know if he gets the credit, will he get caught if he does not plan to live in the home as his primary residence for the required 3 years following the purchase.

**Transferring Home To Children When There Is Mortgage Trouble: What To Do With The Family Farm** A son works the family farm. Now his father is in mortgage trouble on another property. The son wants to know about transferring the home to himself now to avoid the loss of the family farm. He has worked the family farm for some time and his father's will intends on transferring the home to him upon his death.

**Home Buying Risks, Pitfalls and Tips For New Construction Homes** Home buying has risks associated with it, particularly the purchase of a new construction home in a new development. There are pitfall all along the way. What should you do to protect yourself? How do you handle the uncertainty of buying a new construction home in a new development? One reader suggests that the buyer should share any risks in that new construction purchase with the lender that give the buyer the loan. Would you agree? Leave your comment below.

Social Security garnishment. Can a creditor go to court to garnish your Social Security benefits? Can the Federal Government ever garnish your Social Security benefits? Can your bank allow your Social Security benefits to be garnished? How can you prevent that from happening?

$8000 First Time Home Buyer Tax Credit And Money From Parents With the $8,000 First Time Home Buyer Tax Credit due to expire on November 30, 2009, parents are coming to the aid of their children by giving them money or buying a home with them to qualify and take advantage of the tax credit. If you are single and have not owned a home for the prior 36 months and make $75,000 or less and buy a home worth at least $80,000, you should qualify for the $8,000 first time home buyer tax credit. But there are exceptions.