Question: My parent signed his/her home over to me. Does this transaction have to be reported to the IRS?
Yes. If certain conditions apply, this transaction would be considered a taxable gift from your parent to you.
Generally, your parent must file a gift tax return (Form 709 (PDF)) if any of the following apply:
- Your parent gave gifts to at least one person (other than his/her spouse) that are more than the annual exclusion for the year. For 2012, the annual exclusion was $13,000, for 2013, the annual exclusion is $14,000.
- Your parent and his/her spouse are splitting a gift.
- Your parent gave someone (other than his/her spouse) a gift of a future interest that he or she cannot actually possess, enjoy, or receive income from until some time in the future.
- Your parent gave his/her spouse an interest in property that will be ended by some future event
Note: If any of the above conditions apply, your parent is required to file a Form 709, even if a gift tax is not payable. See Publication 950, Introduction to Estate and Gift Taxes, for additional information on gifts.
Category: IRS Procedures
Subcategory: For Caregivers