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To: Scarpetta

So why didn’t he give it to them while they were alive?


37 posted on 10/16/2019 9:45:55 AM PDT by gcparent (Justice Brett Kavanaugh)
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To: gcparent
So why didn’t he give it to them while they were alive?

Let us say the current gift tax limits apply, thus you, as an individual can give $15k/year to any number of people without penalty to you or the recipient. Double the amount if married even if filing a MFJ tax return. Go over that amount and you, the giver, should start filing a gift tax return which MAY mean paying taxes on the gift.

IRS Form 709 gives details but basically any gift in a single tax year is based at 'Fair Market Value' and is cumulative over the lifetime of the giver to the recipient. CURRENT lifetime tax-free limit is $11+ million but in the recent past it was as low as a single million. Also note that earlier years had lower exempt reporting amounts as low as $10k.

In short and not knowing the circumstances of the inheritance, the parent could have been land-rich and cash poor. Giving away the land was probably impractical before the death and expensive afterwards.

NOTE: This is NOT Tax Advice. While I am an Enrolled Agent (EA), there is always something that makes an individual's tax filing unique and what I have written above is very generic. Do your OWN study and, if needed, consult a tax professional!

59 posted on 10/16/2019 10:27:28 AM PDT by SES1066 (Happiness is a depressed Washington, DC housing market!)
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