Gift Tax in Texas
What is the name of your state? Texas.
I realize that according to IRS rules, we can now give anyone $12,000 per year tax free, However, I want to gift my son and his wife and family a farm in Texas. Are there any gift tax implications for the Sate of Texas?
Join Date Nov 2005 Location St. Richard's Posts 8,950
A plan to gift 96,000 a year over a number of years. that suggests a very substantial piece of property.
While avoiding taxes is a laudable goal, don't make the mistake of foregoing professional advice on how to best proceed.
There is such a thing as penny wise, pound (dollar) foolish. And I would think not seeing an expert CPA with estate / gift
tax experience might fit that description.
You need to consider the property tax implications and the like. Real estate transfer taxes. County fees.
While the basic math multiples you suggest are sound, you should consult a pro to make sure all the hassle is even worth it, given the sizable gift tax exemptions you (and your wife) may have available.
I can't comment on the Texas tax issues. my advice to seek professional counsel still stands equally.
Do so before you embark on this plan.
Also think of administrative costs. You might be spending big bucks to structure this arrangement and have no or very little tax due. Why spend more money to avoid a smaller amount in tax?
Last edited by xylene; 08-21-2007 at 06:31 PM.