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Originally Posted by pamget
#1My siblings and I were given our father's farm/property. It consists of 204 acres of land (approx 120 forest/80 cleared). This property is primarily just our "get-away" and during hunting season, the boys and family all hunt deer/turkey. The property was given to us as our father resides in a nursing home now and his assets are too much to qualify for medicaid. We have sold his home to pay for his nursing home costs, and now need to find another avenue of income to continue supporting his nursing care expenses. We have approximately $75K-$100K in timber on this property. It will take a year or more to redeem it all, but our question is that this money is for our father's care, is there anything in the tax laws that lower or even eliminate a negative impact on us?
#2We live in Missouri. The money from the sale of the timber will not be supplementing our income and will go into a separate account, and is to be used exclusively to maintain our father. Can you refer us to professional to help guide us through these issues? |
#1;you receive aren?t considered income. It doesn?t matter how large they are. You don?t report them on your income tax return in any way, however, you must report any income produced after the gift.I mean Aslongas you sell the timber then you need to report yur portion of income on your return. You can?t get a federal income tax break for paying for your parent?s nursing home care expenses . You can, however, pay your parent?s medical care providers directly and have the expenses excluded from your taxable gifts. Then in this case you do not have to file form 709 . The gift tax does not apply to an amount you paid on behalf of an individual to a person or institution that provided medical care for the individual. The payment must be to the care provider. Medical care includes expenses incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, or for transportation primarily for and essential to medical care.
#2; As said,you still need to report your portion of the income from the sale of the timber on your return as your income. You may contact an IRS enrolled Agent and a CPA doing taxes in your local area form professional help for your situation.