Real Property Transfers
Gifts of real property implicate gift tax, property tax and income tax
Want to make a gift of personal property or real property to a family member? If you merely make the gift or transfer title without taking the proper actions, you may be facing gift taxes, increased property taxes, and the loss of a stepped-up basis in the property resulting in higher capital gains taxes.
You must take the proper actions to gift real property to a child or grandchild and prevent a reassessment for property tax purposes. With gift taxes of up to 40% of the value of the gift, you should seek the guidance of an attorney and tax advisor to know what exclusions are available to avoid or reduce these taxes. Professional appraisals and certain forms are required in order to preserve your current property taxes and avoid gift taxes.