I bought a house a year ago, it is paid off. If I would like to gift it to my son will he need to pay tax on it every year? Or how does it work when I'm gifting a house? What taxes we will need to pay after it? Thanks for the answer.
Property taxes are due every year by the entity that owns property in Florida. As for taxes on the transfer itself, that depends on the value of the property, and how it states value in the deed of transfer. Since the house is paid off, the county tax assessor will not impute a tax based on the outstanding mortgage, so it should just be a minimum stamp tax. Most such deeds say "for $10.00 and other good and valuable consideration" or "$10.00 and love and affection." In which case the minimum transfer tax is paid.
The law is complicated and although the facts expressed may seem to be all that is relevant, there may be many other important facts to consider. Also, the law is constantly undergoing change, so what may be correct today, may not be accurate tomorrow. Only a full consultation with an attorney experienced or knowledgeable in the specific legal subject matter is likely to result in the optimal course of action. My practice has entailed more than a 30 year span of many real estate, personal property, and bankruptcy issues. Find out more about me at: FloridaPropertyLitigation.com.
In addition to the taxes that Attorney Russo mentioned you may have to pay federal gift tax on you gift to your son. You should consult your CPA or a tax lawyer before you make this transfer.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
Property taxes are due each year. There may be additional ways to transfer the property with more favorable tax consequences. Since this is a sizable transaction, you should first consult with a Trusts & Estates attorney, to explore your options and determine the best way to do this.
This information is for educational purposes only and is not to be relied upon as legal advice, legal opinion or as a complete answer/information to/for this discussion. You should always seek competent legal advice from a licensed attorney in your area for help with your specific legal question. No attorney - client relationship is created, intended or should be construed upon from this general discussion. For a free consultation, you may contact me at (305) 320-4LAW.