If I gift a family member 80,000 in equity will that effect us financially at tax time?

[DoninGA · Accepted solution]

Gifts given or received are not reported on a tax return.

The giver of the gift which has a value of over $18,000 (2024) has to report the gift given on IRS form 709.  This form is filed separately from your tax return and mailed to a separate address.  You will not have any taxes owed on the gift given if the total of all gifts ever given is less than $13.61 million (2024).

TurboTax does not support IRS Form 709.

Go to this IRS website for Form 709 - https://www.irs.gov/forms-pubs/about-form-709

[Hal_Al]

 "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/...