@debruss127 wrote:
Thank you for this information. My brother has not gifted more than 12M in his lifetime. so filing a 709 would just inform the IRS that the income was gifted. I am still slightly confused; as I am hearing, gifting more than 16,000 is taxed. Am I understanding that correctly?
The home was my brother's primary residence for more than 5 years, as well.
Technically, gift tax is owed. But, there is a lifetime deductible amount of $12 million. That's like a single person with a minimum wage job who made $10,000 a year--technically their income is taxable, but because it is less than the $12,550 standard deduction, no tax is actually owed.
