Do I have to pay taxes on a property my parents gave me?

August 21, 2008

From:  Kate
Date:  18 Mar 2008

My elderly parents have deeded a condo to me that I have been renting from them for the past 10 years. Will I pay taxes other than regular property taxes on this?

Answer

Date:  25 Apr 2008

Hello Kate,

Assuming you’re a U.S. person, the receipt of gifts is not subject to income tax. Your parents should file gift tax returns for the transfer.

(Generally I don’t favor gifts of appreciated real estate by elderly parents to their children. If a reader is considering making such a gift, be sure to get tax and legal counsel before going ahead.)

Good luck!
Mike Gray

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