Question
My mother transferred to me the title of her home. Do I need to report this transaction to the IRS?
Answer

No, but your mother may be required to report this transaction to the IRS as a taxable gift to you. Generally, a taxable gift is any property transferred for less than adequate and full consideration.

Generally, an individual must file a gift tax return (Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return) for the year of the gift, if any of the following apply:

  • The individual gave gifts to at least one person (other than his or her spouse) that are more than the annual exclusion amount for the year. The annual exclusion amount for 2018 and 2019 is $15,000.
  • The individual and his or her spouse are splitting all gifts made by each other during the calendar year. An individual may make a gift of the individual’s own property but treat the gift as having been made half by the individual and half by his or her spouse for Federal gift tax purposes, but only if both the individual and his or her spouse file a gift tax return (Form 709) consenting to this treatment for all gifts made during the calendar year. See Instructions for Form 709  for exceptions to consenting spouse’s filing requirements.
  • The individual gave someone (other than his or her spouse) a gift of a future interest that the donee cannot actually possess, enjoy, or receive income from until some time in the future.
  • The individual gave his or her spouse an interest in property that will end by some future event.

Note: If any of the above conditions apply, that individual must file a gift tax return (Form 709) even if a gift tax is not payable. See the Instructions for Form 709 and Publication 559, Survivors, Executors, and Administrators for additional information on gifts.

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