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My wife's grandparents own a lot that they are going to gift to us that is worth $45,000. Is there a gift tax for this transfer?
The lot is in the name of both of my wife's grandparents.
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As the receiver of a gift from an individual you do not report the gift received on your tax return, regardless of the amount received or the value of the gift.
The giver of a gift to an individual does not report the gift given on a tax return.
The giver of a gift to an individual can gift up to $14,000 to a single individual in a year without having to complete a Gift Tax return, Form 709. So each of your wife's grandparents can give you $14,000 for a total of $28,000 to you and each give your wife $14,000 for a total of $28,000 to her. So that would be up to $56,000 in a year to you and your wife from the grandparents. They would not need to complete a Form 709 since they have not exceeded the requirement of $14,000 to a single individual.
Note - Gift taxes are only assessed after the total amount of gifts given are greater than $5,450,000 (2016)
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The question was not asked...but what is the "Basis" of that lot should the recipients later sell that lot?
AS I recall, it's the Grandparents basis, not the current assessed value....so it would be critical to get that information from the grandparents now for possible future use.
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