@jumicircle wrote:
What you might consider is gifting the person in stages so that no tax is required. For example... Let's say the house is worth $160,000 you could gift $16,000 this year and then the same amount for another 9 years (it won't really be that long because the exempt amount goes up nearly every year).
No, the annual exclusion does not go up every year. It was $15,000 for four years and then $14,000 for the four years prior to that.
Regardless, I cannot think of anything more ridiculous than gifting one-tenth of a house each year for ten years. It is simply absurd and an appraisal is still needed for the total fair market value at the time of each gift.
