Taxes on a house given to me?

Question

My parents bought me and my husband a house for $90,000 this past May. What are the tax implications for such a thing? My husband doesn't make that much money, and I stay home with our son. Are we going to have to pay taxes on his income plus $90,000?

Answer 1

Gifts are not taxable.

You parents, however, will have to file a "Gift Tax Return".  They may or may not owe any gift taxes depending on how much money they have given away in their lifetimes.

Answer 2

You won't necessarily be taxed this year, but since it is part of their estate, you might become liable for inheritance taxes, possibly from your State.  The Federal tax implications and State requirements are likely to be different.  You and your parents should contact a lawyer with tax experience.

Answer 3

No, you will not be taxed on the value of the house.  The receiver of a gift never is taxed but the giver may be if they don't meet certain qualifications.  Check out the gift tax laws.