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Posted by Ron Rosenfeld on March 8, 2007, 12:04 am
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We purchased property some years ago -- raw land for $30K.
It's not liquid, but it's probably worth a lot more today.
If we were to give it to our children, how do we value the
property for gift tax purposes? What would their basis be?
"We" are husband and wife.
"They" are son (of one of us) and daughter-in-law.
Thanks.
--ron
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Posted by Stuart A. Bronstein on March 10, 2007, 2:30 am
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> We purchased property some years ago -- raw land for $30K.
>
> If we were to give it to our children, how do we value the
> property for gift tax purposes? What would their basis be?
The basis for your kids would be your basis - $30,000. The
value of the gift is the current value of the property. A
professional appraisal is best, though a written opinion
from a local real estate broker who works with raw land may
suffice.
Oh, and don't forget to file a gift tax return. The first
$48,000 will be tax free, but you may need to file a return
even if it's less than that depending on the marital
property laws of the state you live in.
Stu
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
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<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Ira Smilovitz on March 10, 2007, 2:30 am
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> We purchased property some years ago -- raw land for $30K.
>
> It's not liquid, but it's probably worth a lot more today.
>
> If we were to give it to our children, how do we value the
> property for gift tax purposes? What would their basis be?
>
> "We" are husband and wife.
>
> "They" are son (of one of us) and daughter-in-law.
The value is the current value as determined by a qualified
appraiser. Their basis would be the lesser of $30K, assuming
the land is worth more than $30K.
Ira Smilovitz
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by ltsllc on March 10, 2007, 2:30 am
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> We purchased property some years ago -- raw land for $30K.
>
> It's not liquid, but it's probably worth a lot more today.
>
> If we were to give it to our children, how do we value the
> property for gift tax purposes? What would their basis be?
>
> "We" are husband and wife.
>
> "They" are son (of one of us) and daughter-in-law.
Their basis in the land is your adjusted basis plus any gift
tax paid on the appreciation of the property up until the
time of the gift.
Your adjusted basis is the original cost plus any costs for
improvements, additions, litigation expenses, etc. minus any
costs for any tax benefits such as return of capital, tax
credits, etc.
Rudy
www.LizcanoTaxServicesLLC.com
Disclaimer: The posted answer is for educational and
guidance purposes only and Lizcano Tax Services, LLC and/or
Rodolfo Lizcano have not been engaged to render any tax,
accounting, legal, or other professional services.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Harlan Lunsford on March 10, 2007, 2:30 am
Please log in for more thread options Ron Rosenfeld wrote:
> We purchased property some years ago -- raw land for $30K.
>
> It's not liquid, but it's probably worth a lot more today.
>
> If we were to give it to our children, how do we value the
> property for gift tax purposes? What would their basis be?
>
> "We" are husband and wife.
>
> "They" are son (of one of us) and daughter-in-law.
This sounds similar to the gift tax return I did just today.
you value the property at fair market value (FMV).
However their basis will be your basis, meaning what you
paid for it back then.
ChEAr$,
Harlan Lunsford, EA n LA
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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