Legal Question in Tax Law in California

Parent selling house

Hi,

my mom is selling her house and will be giving me and my two siblings money from the sale. How much can she give us each with us avoiding being taxed? Also, can she give to me and my wife separately or is that considered one gift?? We think she will be giving us each approx. $50,000.00

Any information would be appreciated.


Asked on 2/22/05, 7:06 pm

1 Answer from Attorneys
Pauline Tokunaga Koenen & Tokunaga, P.C.

Re: Parent selling house

You can give up to the annual exclusion amount of $11K to each person every year w/o paying gift tax (paid by person giving gift or donor). However, the lifetime gift tax exemption is $1 million, which means you can gift up to that amount during your life w/o paying gift tax.

Since the gift to you and your wife will exceed $22K (11 for each of you), your mom has to report her gift on IRS Form 709.

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Answered on 2/23/05, 12:16 pm


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