i am selling a parcel of my property to my son, i am wondering what taxes either of us have to incure, property is worth 100K, i am selling it for 10K to help him and his family,
what taxes could I or him expect?
You are not really selling this property to him. You are making a gift to him of $90,000. At the federal level, you as the donor are not subject to gift tax where the gift qualifies for the annual donee exclusion of $13,000 and if you have not used up your lifetime gift tax exemption of $1,000,000. Assuming you have not made any prior gifts or minimal gifts, you would not have to pay a gift tax. Note, that on such a gift you must file a Form 709 to report such gift with the IRS.
At the federal level, your son does not pay any gift taxes nor does he pay an income tax on receipt of such property.
Check with your tax accountant for the appropriate treatment in Wisconsin.
Hope this helps.
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Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.
