The Tax Pitfalls Of Gifting Your House To Your Family

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With the rising costs of homeownership and the looming concerns of long-term care, it's no wonder that many parents consider transferring their homes to their kids. However, this seemingly generous act can come with significant financial pitfalls and tax consequences that you may not be aware of. Join us as Don shares some important items to consider and common mistakes to look out for…

With the rising costs of homeownership and the looming concerns of long-term care, it’s no wonder that many parents consider transferring their homes to their kids. However, this seemingly generous act can come with significant financial pitfalls and tax consequences that you may not be aware of. Join us as Don shares some important items to consider and common mistakes to look out for…

From capital gains taxes to the loss of state-specific benefits, there are many factors to think about. Don suggests consulting with an experienced estate and elder care attorney before making any decisions. These professionals provide personalized advice and ensure that all legal and financial aspects are considered to help you avoid costly mistakes.

Here’s some of what we discuss in this episode:

  • The annual gift exclusion limit for tax-free gifts in 2024
  • Gift exclusions for tuition and medical bills
  • Contributing to a tax-free Roth IRA for young family members as a gifting strategy
  • The capital gains tax implications when gifting a house versus inheriting it
  • A few state benefits that you could lose by gifting your home to your kids

Resources for this episode:

IRS Home sale exclusion –

https://www.irs.gov/taxtopics/tc701

IRS Gift Credit –

https://www.irs.gov/newsroom/estate-and-gift-tax-faqs

NJ Property Tax Freeze –

https://www.nj.gov/treasury/taxation/ptr/eligibility.shtml

NJ ANCHOR benefit –

https://www.nj.gov/treasury/taxation/anchor/index.shtml

 

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ABOUT YOUR HOST...

Donald W. Cash – CPA, CFP®, is an independent advisor. After graduating from Rutgers University, he began his career in 1985 as an accountant. In 1990, he entered the field of Estate Planning, concentrating on long-term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs.

Don advocates for a holistic approach to Estate and Financial Planning and has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers.

He is married to Cathy and they have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.

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don@donaldcash.com