You don't pay taxes on the gifted property when you receive it. When you sell the gifted property, you will pay capital gains on the gain both federally and in State.
Hope that clarifies your question!
Thank you
Anonymous_
Level 15
Oct 25, 2023 12:15:24 PM
The child would not be liable for capital gains tax on a gift from a parent until such time as the child sold the house to an unrelated third party.