Legal Question in Tax Law in Kansas

Re: Income Tax

There is no income tax to you on the gift when it is received. Nevertheless, you will receive the gift at your parents' basis. Therefore, if you sell the gift, you will pay income tax (capital gain) on the increase from the basis to the selling price.

Also, depending upon the amount of the gift, your parents may be subject to gift tax. Therefore, you should talk to your tax attorney before the transaction is made.

I hope this helps!

Ron Cappuccio

www.taxesq.com