Question for the Money Doctors
Question submitted on Apr 21, 2010.
QuestionMy wife and I have a second house and want to give it to our daughter for a dollar. Can we do this? How should we proceed, should we contact a lawyer? Or should we contact a CPA?
Answer (answered by Meet the Money Doctors)
Yes, but this would be considered a gift to your daughter. You will need to file a gift tax return assuming the home is valued at over $26,000. Prior to gifting this, I suggest that you consult with a CPA to run thru the taxability to your daughter should you gift the house now or hold on to it and a transfer on death so she receives a step up in basis. If you gift the property, you will need to transfer the deed and I suggest you contact an attorney.
There are many options so I would build a team of advisors and to ensure you are educated on all the options available.
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