Can you gift a house to non-relative tax free??

Motaskate · #1 (**permalink**) 03-28-2017, 02:01 PM

My brother and I were debating as he is planning to give his home to his GF (to be clear, they live together however are NOT: married,dom. partners, common law, etc.).

I warned him that the IRS of California FTB might look at it as a gift and tax it based on market value (minus the gift tax exemption = approx. $14K). Is this the case?

I was sure until I read about lifetime exemptions and unified credits and now I am confused? any insight is appreciated....

Motaskate · #2 (**permalink**) 03-28-2017, 02:03 PM

Quote:

Originally Posted by Motaskate

I warned him that the IRS of California FTB might look at it as a gift and tax it based on market value (minus the gift tax exemption = approx. $14K). Is this the case?

***Correction: ....that the IRS *or California FTB might....

Motaskate · #3 (**permalink**) 03-28-2017, 02:05 PM

CORRECTION: I warned him that the IRS *or California FTB might look at it as a gift and tax it based on market value (minus the gift tax exemption = approx. $14K). Is this the case?