What are the tax considerations to make when my parents give me their home?

Answer by  mpartin (1600)

Alot! This will probably be viewed by the IRS as taxable income and will probably go against you as income so that you have to pay taxes on it.

Answer by  Att4372 (1704)

If a gift, your parents need to file a gift tax return and pay applicable taxes. Or, they could sell it to you and gift you your morgage payments.

Answer by  tamarawilhite (17883)

The gift tax applies on any gift over 55,000 per person. Furthermore, if they go into a nursing home within 5 years, this may disqualify them from Medicaid.

Answer by  Chaneygirl (1755)

Your parents could have potential gift taxes depending on the value of the home. At a minimum, they should each fill out the gift tax form the year of gift.

Answer by  LegalGirl (183)

A few things you should know before attempting any legal action. You should consult a lawyer and make sure you're knowledgeable about the laws and statues in your area. Cheers!

Answer by  tamarawilhite (17883)

If they gift it to you, gift tax will be applied. There is also the risk that if they require Medicaid or Medicare coverage for a nursing home within three years of the gift, which is a look back period, this could count as tax fraud to reduce taxable assets instead of using their own assets to pay for care.