Ilinois Gift Law and Tax
If my mother wanted to give me a house, making me sole owner, what is maximum amount she can be give as a gift without being penalized by taxes? What is the best way to give away a property without being penalized by taxes.
1 Answer from Attorneys
Re: Ilinois Gift Law and Tax
A person can gift up to $12,000 each year without having to report the gift on a gift tax return.
If your mother AND father make a joint gift, the gift amount can be $24,000.
With that said, since a house is valued at much more than $24,000, a gift tax return will need to be filed. However, there is no tax due until the lifetime gift amount (of the donor - the person giving the gift) has reached $1,000,000.
You should discuss your question regarding the best way to transfer a property interest with an estate planning attorney since there are other factors that need to be considered before giving you an answer.
Good luck to you.
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