topic Re: Early inheritance in Get your taxes done using TurboTax

Early inheritance

swegner — Mon, 17 Feb 2020 21:08:33 GMT

My father owns an investment property (rental house) and he wants to add my name to the deed. This would be considered either a gift, or early inheritance. Do either of us need to pay taxes or file tax forms on any portion of the value of the property?

Re: Early inheritance

JamesG1 — Mon, 17 Feb 2020 21:34:30 GMT

It is possible that adding your name to the deed could be considered a gift. The gift could invoke the gift tax which would be paid by the donor, your father.

See this TurboTax help where rjs discusses this issue.

See this TurboTax help discussing gift tax.

Re: Early inheritance

swegner — Thu, 20 Feb 2020 21:00:09 GMT

Thank you.

I read the gift tax information, and if I understand it correctly as long as the value does not exceed the lifetime gift value of $11 M, then my father would just need to submit form 709 since the value of the equity would be over $15k, but not exceed the lifetime threshold. Am I understanding that correctly?