I was given (gifted) a piece of property that included a house, how does this impact my taxes?

[kasi_graffam]

I was given a piece of property by my parents that included their home.  Does this affect my taxes and, if so, how do I account for this gift?

Additionally, I have a construction loan for my home that will be built on that same property, however, since construction hasn't begun, no money nor interest has been paid.  Do I need to account for this loan in some way and if so, how?

[MichaelL1 · Accepted solution]

For a gift it really has no impact on your taxes.

Your cost or basis is the lower of Fair Market value or what they paid for it (plus cost of improvements made while owned).  So you might want to ask them want they paid for it, should you someday sell it or rent it out.

Construction loan no impact right now either.