[Scbang]

Hi, I don't normally use CPA because my return is so simple but we gave our house to our daughter last year and I was caught with from 709 trying to use "Unified Credit"
So, if someone who went thru similar situation can help, it would be very much appreciated.

1. Can IRS web help me with this form?
2. Is there a free help with this form in the villages? ( TURBOTAX does no 709 )

Now some specific questions re: 709

1. The house was jointly owned. Do I need to file (2) 709 and split the gift?
2. If YES, the instruction says spouse must sign but I don't see any place for spouse to sign
3. Where do I indicate "UNIFIED CREDIT,the instruction confuses me between Part2 and Part 3
4. If the cost base of the house is a lot smaller than market value, do I owe Capital Gain tax?
5. If YES, does $500K exemption apply?
6. I am FL resident but the house is in NY, do I have to do anything with NYS Finance?

Cheers!

[retiredguy123]

It may be too late, but the easiest way to give a house to your child is to set it up as a sale and loan, and for both you and your spouse to forgive the loan in annual amounts, $16,000 each in 2022, $17,000 each in 2023 and every year thereafter. You would need to document the sale and loan agreement. That way, you will not exceed the annual gift tax exclusion and do not need to file the Form 709. You would also be able to take advantage of the $500K gain exclusion (if necessary), depending on the house value. But, in any case, you will not owe any estate taxes for the gift, unless your lifetime gifts and estate exceed about $13 million.

For specific help with the form, I would suggest calling H&R Block to see if they have someone who can help you complete the form. I would complete a separate form for each spouse. It appears that the form can be filed separately from your 1040 tax return because it doesn't affect anything related to your current taxes. Good luck.