My husband and I have a revocable family trust that owned 1/2 interest in a piece of residential real estate with. My husband's sister owned the other half. We deeded our half interest to her in 2024 so we are required to file Form 709 as the amount of the value of the 1/2 interest exceeded the $18,000 annual exclusion. Does this mean that the balance is a taxable event to us now or does this form simply collect data until we exceed the lifetime exclusion of $6 million? And what are the pros and cons of considering all transfers to third party as made one half by each of us.
