Situation: I and 5 siblings are legal owners of a lake cabin in Wisconsin. We inherited (via transfer of ownership) from our folks about 20 years ago. Now 3 of 6 owners are going to transfer our ownership shares oto our nephew / niece, who are married. Each of 3 will get $ 34k.
Question: do we have to pay taxes on the $ 34K as misc. income?? OR I was thinking: we / owners are gifting the cabin to nephew / niece; and the $ 34k is a gift to us; hence, we would pay no taxes, as we consider it a gift for a gift. $17k x 2 = $ 34k as gifts are tax free. What is your opinion / ruling on this situation?
