topic Re: Decrease capital gains by gifting in Investors & landlords

Decrease capital gains by gifting

RonMar0 — Tue, 21 Dec 2021 17:15:25 GMT

My wife and I recently sold a rental house for cash at a substantial gain. Can we decrease the resulting capital gains for 2021 by gifting cash to our two kids ($15,000 from each parent to each kid = $30,000 x 2=$60,000)?

Re: Decrease capital gains by gifting

Mike9241 — Tue, 21 Dec 2021 17:22:03 GMT

as described, the gifts will not reduce your capital gain. in order for the kids to be taxed on the sale their name have had to have been on the title.

Re: Decrease capital gains by gifting

Anonymous_ — Tue, 21 Dec 2021 17:24:06 GMT

No, you cannot decrease your capital gain (nor depreciation recapture on the rental) by gifting part, or all, of your proceeds from the sale.

Further, gifts to private individuals are not tax deductible.