We can assist with family transfers and gifts of real estate, with advice on mortgages and avoiding unwanted tax consequences.
It is common for an elder to want to complete family transfers and gifts to pass the ownership of real estate on to a friend or family member by gift. But transferring real estate without consideration can have unintended consequences. If not properly planned and documented, such a transfer could be taxable.
We often take calls requesting help with family transfers and gifts of real estate. Many times the request is simply to prepare and record a deed. While the idea of the transfer is good, steps to avoid unwanted income tax liability for the donor and recipient must be considered. By combining the transfer with a promissory note, mortgage and structured gift of debt forgiveness, these liabilities can be avoided. Our experience with these transactions will help you to safely make your desired gift.
Click HERE for information provided by the Internal Revenue Service on the tax consequences of family transfers and gifts of real estate.
Contact us if you are considering such a transfer. We can guide you through the process to get the results you are looking for.