When Parents Accidentally Gift Real Estate to Children [Tax Smart Daily 052]

Today's topic is about why parents should avoid gifting real estate to their children. Enjoy!
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[@garyo5887]

Rental house is in LLC. My daughter lives in house with family. They currently pay rent. Is there a way for me to gift house to her from LLC? Is there a way for me to not pay any taxes?

[@Chris-fx3se]

Very good explanation of the stepped up basis. Thanks!!!

[@jmarino55555]

You guys are THE BEST. Thank you for all you do. Can you do a video on how and when to make a 754 election?

[@TheRealEstateCPA]

Thanks! And yes we can do that in the future

[@greatsouthmarketing8897]

What if a parent deeds the house to a land trust with children as beneficial interest? Is that the same as a gift?

[@MrRbenji]

If there are concerns of exceeding the estate tax exemption upon death, might an earlier gift (most likely at a lower “value”) be worthwhile even if the basis might not be as beneficial? Or how should the situation be look at in this situation?

[@UnkPhilthy]

My dad received money from a trust and wants to buy a house with cash in NV for me and my family. The property is listed for 450k. What are some issues that could stop this from going thru?

[@TheRealEstateCPA]

Nothing stopping this from going through per se. However, it's important to note that gift would go against his lifetime gift and estate tax exemption - which is currently $12.92 million (double if married) in 2023. Gifts made over his amount are subject to fit taxes, which range from 18% to 40%.