Taxes on gift of house to child

[tax102523]

If a parent wants to gift their adult child a house in California, what are the tax implications for both parent and child? Thank you!

[Anonymous_]

The donor (the parent) would almost certainly be required to file a gift tax return (Form 709), although no gift tax would likely be due.

See https://www.irs.gov/instructions/i709#en_US_2022_publink16784xd0e314

The child would have no reporting requirement as the donee (recipient of the gift) and would most likely take the parent's basis in the house.

[TeriH]

your child should say thank you!  good parent!

If you gave gifts to someone in 2022 totaling more than $16,000 (other than to your spouse), you probably must file Form 709, the gift tax return.  This return is not part of TurboTax, but you can download from the IRS and complete and mail in.  There are no consequences, tax wise, as long as you don't meet the gift tax lifetime maximum.  Taxpayers typically only pay gift tax on the amounts that exceed the allotted lifetime exclusion, which is $12.92 million in 2023. Gift tax rates range from 18% to 40%.