How to avoid the estate/gift tax?
414839
For 2006, one person can give another person $12000 without gift tax. That means your parents can give you $24000 without any gift tax. You don't have to pay income tax on the gift.\n\n\nZhicheng Lai\n\nEnrolled Agent
233861
Since only $250,000 PROFIT will be exempt from taxation (if she is married to a co-owner it's $500,000) she should check on taxes first. The actual cost of the residence is  subtracted from the net sales price to determine profit.\n\nThe tax responsibility for making a $200,000 gift to anyone rests with the GIVER not the recipient, so there will be gift taxes in addition to any taxes on the profit from the sale. \n\nHowever, each year an individual can gift $11,000 to another individual without any tax consequences.  That means for gifts from two parents to a married couple $44,000 a year without taxes. A single parent can gift $22,000 a year to a couple without paying any gift tax.(these figures were for 2005 and could have increased very slightly for this year)\n\nThere are some other requirements - time in residence for one.  The IRS has a guide "Selling your Home", Publication 523, which you can access on line, pick up at a local IRS office, or get through the mail.\n \nAs far as the gift taxes are concerned she should see her tax adviser, who can save her money in the long run.  \n\nIf you have a question e-mail me through Answers.
208027
It depends on your personal finances.  If you own a home and have a mortgage on it, you can deduct the interest.  You have to itemize (schedule A) to get most deductions on a personal return, but once there, you can also deduct charitables and medical expenses if they are very very high relative to your income.  The best strategy for most individuals is to try and minimize your income in the first place by contributing to an IRA (traditional) or to participate in the 401(k) plan where you work.  Not knowing anything about your personal situation, I can't offer much more advice than that.
227173
It would be wiser to divide the gift in smaller amounts and give them to several members of your family and then they can give the money to you and you don't have to pay any taxes. Or you can divide the gift among several years.\n\nThere is a limit to the amount of gifts you can get tax free each year. Find that number.\n\nI am also a friend of yours and I can also give you a gift each year. If you know what I mean.\n\nFor an amount as small as yours you problably can do it with just 3 relatives or friends.
582371
As lovely an idea that it, no it won't avoid any taxes. The only way to avoid the capital gains or ordinary income taxes on ivestments is for you to invest in a tertirement account like an IRA or Roth IRA or employee benfit plan.\n\nIt sounds like you own a business. Speak with your CPA to find out which plan is best for you. SOme examples are\n\nSEP\nSimple SEP\nSimple IRA\nSimple 401k\nRoth IRA\nTraditional IRA\n\nAS you can see, there are alot of choices. Each one has its benefits and srawbacks. Some are tax free and some are just tax deferred until retirement.\n\nIf these plans arent an option for you, look into index funds, they typically have low if not any turnover. \n\nTurnover=capital gains=taxes\n\nGood luck
1007956
Get to an elder law attorney TODAY to make sure that you can take this money in such a way that it is not reachable by Medicaid liens.  You may have to disclaim the inheritance (and you should if a Medicaid lien threatens to take a large portion of it).\n\nAnd, if a relative is on Medicaid, please, please see an elder law attorney to write your will in such a way that it doesn't hurt them.
847980
Depending on how large the estate is, there could be estate taxes (but only if it's in the millions for federal) - if there are, those would be paid by the estate, not you.  There might also be state taxes involved, which again would be paid by the estate.\n\nIf you inherit assets, like stock or property, when you sell them you'd owe capital gains taxes on how much they've appreciated since you inherited them.  You should be given some sort of paperwork to show what the assets were valued at, at the time of death.  That becomes your basis.
93990
You can give someone $11,000 a year, tax free.\nYou can give someone as much as you want this year, and it has no effect on this year's taxes.  If over $11k, the different is deducted off your estate tax limit.  This only comes into play when you die, and if you are worth a couple million.\n\nYou can give your kid $11k.  Your wife can give your kid $11k.  $22k a year, nothing to the IRS.
276770
Be careful, if you are inheriting a deceased estate there may be some tax implications, depending on the assets in question. Speak to a tax accountant or financial planner for current advice. Better yet, speak to at least 2, that way you get a balanced opinion on the issue. \n\nCheers, L
126711
It depends on how much you inherited. There is a special tax form that you'll need to fill out. Go to the IRS website and do a search for the form.
456285
The only way is to EXCHANGE them for other income property, called a SECTION 1031 TAX-DEFERRED EXCHANGE.  There are rules and time limits, and you cannot take out any cash without paying taxes on it.  If you cash out and just sell the properties, there is nothing to help offset or eliminate the capital gains tax at both the federal and state levels (if your state has income tax).  For more information, you can go look at the Federation of Exchange Accommodators website www.1031.org.
945726
Yeah unless the money Is delt under the table. Youll have to pay a tax on it, the ammount really depends on how much youll be reiciving
294639
Upon your mothers death you would inherit the house tax free with a stepped up basis equal to its current market value. At that point you could sell it with little or no tax consequence. If her estate is under the threshold in the year she died, the estate would not have a tax either. Since I don't know the value of her estate, I can't answer that ??. If you sell now, she might have a taxable event if the house appreciated more than $250K since 1999 basis she got when your dad died. \n\nThere are a few wrinkles based upon the info above. If it were my own situation, I know enough to make the decision, in your case you should spend an hours time with a CPA who knows estates & trusts.\n\nIf you want, post your moms basis on DOD in 1999, current value and size of estate and we could hash it out a bit more. However it is still wise to see a CPA.
839692
An estate planning and taxation attorney (with LLM) should be able to assist you.\n\nIf you can't find a referral from friends or family, go to this web site to look for one http://www.lawyers.com/?site=466&CMP=KA20068&county=&city=&state=46  Your state Bar associate may also have recommandation.\n\nBest wishes.
995452
I strongly urge you to contact a probate lawyer in Texas.  Texas law may have a procedure that allows you to officially disclaim your inheritance, but you need guidance from a competent Texas attorney.  Failure to proper advice might resulted in some unexpected and unpleasant tax consequences.
884689
http://www.irs.gov/taxtopics/tc557.html\n\nCheck out that link. Basically, it states that if you set it up as "made as part of a series of substantially equal periodic payments over your life or life expectancy, " you can avoid the 10% tax penalty.\n\nI would speak with your financial advisor/tax accountant to discuss ways to set it up this way.
565220
the lawyer settling the estate should take care of that for you. if there is no lawyer, call the irs toll free and ask them.