turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

If a non relative gives someone a house worth $550,000, is there a gift tax incurred? Thanks

 
3 Replies

If a non relative gives someone a house worth $550,000, is there a gift tax incurred? Thanks

Yes.    The person who received the gift does not have to report the gift---gifts are not taxable for the recipient of a gift.   But the person who GAVE the gift must complete a gift tax Form 709 if the gift to one person was more than $15,000 in one year.   That does not mean tax will be owed----but the gift must be reported against a lifetime gift limit amount.

 

GIFTS

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return.  Money that you gave as a gift to someone else is not deductible for your taxes.

 

Turbo Tax does not support the gift tax form 709, but here is a link:

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

 

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

 

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

If a non relative gives someone a house worth $550,000, is there a gift tax incurred? Thanks

What is important to the receiver is the donors basis and the current fair market value.

 

https://ttlc.intuit.com/community/investments/help/how-do-i-determine-the-cost-basis-of-stock-i-rece....

Hal_Al
Level 15

If a non relative gives someone a house worth $550,000, is there a gift tax incurred? Thanks

"Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/....

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question

Related Content

Manage cookies