Posted by soapymac on June 06, 2000 at 12:04:29:
but you will need to do some more homework.
First, check with your tax advisor and find out what the gift tax limit is…the one established by the Congress and controls the IRS rules. Last time I looked, the amount was $10,000…but I believe Congress enacted an inflationary adjustment. That’s why I suggest your tax man.
Second, what is fair market value for the land he wants to give you? Is it more or less then that amount? If it is less, no problemo. If it is more, then you may want to investigate other avenues of transfering ownership: some form of a trust may work here.
Third, just to clarify things: are you concerned about the gift taxes YOU will have to pay? Unless there are some laws within your state, generally speaking, the tax consequences are the responsibility of the person GIVING the gift.
Hope this helps.