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yingweiyejr
New Member

I will be selling a property to my brother via gift of equity. The amount of equity is $52,450. Will I have to pay gift taxes?

 
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TomD8
Level 15

I will be selling a property to my brother via gift of equity. The amount of equity is $52,450. Will I have to pay gift taxes?

You will have to file a gift tax return, IRS Form 709, because your gift tax exceeds the annual exclusion amount of $15,000.

But you won't have to actually pay a gift tax, because the lifetime exclusion for gift/estate tax is $11.4 million.

https://www.irs.gov/pub/irs-pdf/f709.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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TomD8
Level 15

I will be selling a property to my brother via gift of equity. The amount of equity is $52,450. Will I have to pay gift taxes?

You will have to file a gift tax return, IRS Form 709, because your gift tax exceeds the annual exclusion amount of $15,000.

But you won't have to actually pay a gift tax, because the lifetime exclusion for gift/estate tax is $11.4 million.

https://www.irs.gov/pub/irs-pdf/f709.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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