DianeW777
Expert Alumni

Get your taxes done using TurboTax

The year of purchase was a joint tenancy as you indicated, your name as well as your daughter was on the deed at that time.  For this reason there is no gift tax return required in that year (2019).

 

Fast forward to the current year, 2021.  In tax year 2021, your daughter refinanced, took your name off the property, which you allowed her to do.  There is no mention of whether she paid you back for any of the down payment. Therefore, a gift tax return may need to be completed for tax year 2021 if she is not required to pay you back for the down payment.  This would mean that you gifted her the money in 2021 for the down payment you provided and now gifted to her.

 

I understand your calculation however you enter the entire gift of $45,000 and the annual exclusion is $15,000 for 2018, 2019, 2020 and 2021.

 

Due to the lifetime gift tax exemption amount of $11.7 million in 2021, there will be no tax due, however a return must be filed because the gift was greater than the annual exclusion of $15,000.  

 

Lastly, depending on what was actually in writing or agreed upon by you and your daughter, fair market value of half the property could come into play.  I advise seeking the advice of legal counsel specializing in gift tax law.

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