My father deeded the family home to me due to health issues. Do I need to claim this on my taxes?

[macuser_22]

No.   But he must file a gift tax return (form 709).   There is not actual tax unless all his gifts exceed $11.7 million.

However,  since it is a gift then his basis in the property becomes your basis when you sell the property.    If he had just left the property to you in his will then the basis steps up to the value of the property at the time of death.   

Gifting the property could end up being very costly to you.   Be sure you get all of his records of the original amount he paid for the property and any improvements he added to the property to calculate his (and now your) cost basis.

[Anonymous_]

You would not report this gift as income on your income tax return, but your father may have to file a gift tax return (Form 709) if the value of the gift was more than $16,000 ($15,000 for 2021).

See https://www.irs.gov/instructions/i709#en_US_2021_publink16784xd0e314

I would highly recommend that you seek local legal counsel and/or a local tax professional.

See https://www.avvo.com/estate-planning-lawyer.html

See also https://taxexperts.naea.org/listing/service/estates-gifts-trusts

An estate planning attorney should be able to structure this transaction so you (and your father) get the maximum benefit from it while minimizing any adverse tax consequences.

[Opus 17]

STOP!!!!!!!

Get to an estate planner pronto.  You may need to give the house back to him, then do something different.

Let me give you one example.  Suppose he needs Medicaid for a nursing home in the next 5 years.  Medicaid won't cover you unless you are "poor".  You can't give away your stuff to make yourself poor for Medicaid.  Medicaid will ask for all the large gifts he has made in the past 5 years, such as giving his house to you.  Medicaid can then assess a penalty based on those gifts, and you will have a choice of selling the house to pay your father's nursing home bills before he gets coverage, or leaving him with no Medicaid and huge debts which can be inherited by you (medical debts can be inherited by heirs even though other debts usually can't be.)

Giving his home to you will also saddle you with a capital gains tax bill when and if you sell the home that you won't have to pay if you do it right.

See an expert immediately.