Gifting land in Indiana

[slowG]

Anyone have experience with this? Say I wanted to give my son 20 acres of land, what are the rules involved with taxes,engineer needs, etc?

 

[chezuki]

Anyone have experience with this? Say I wanted to give my son 20 acres of land, what are the rules involved with taxes,engineer needs, etc?

Give it to me and I'll make sure he gets it.

 

[rhinoabe]

When mom gave me my land it was already a complete plot. A law office drew up a new dead and transferred it to me at the court house. Capital gain tax will be paid if I sell.

 

[slowG]

Is there a limit to how much can be given at one time before it can be taxed?

 

[chezuki]

Is there a limit to how much can be given at one time before it can be taxed?

Depends on the property value.

Gift Taxes - What You Need to Know:

If you give someone a gift or gifts of money or property and the value is over the annual gift exclusion amount, you will generally owe gift taxes.
If you give a gift of property, taxes must be paid on the fair market value of the item (not the purchase price, nor the original value).
You do not have to pay tax on gifts totalling less than (or equal to) the annual exclusion amount ($14,000 per recipient in 2013).
You do not have to pay tax on gifts that qualify for other exclusions (see below).

Gift Tax Exclusions

There are a number of ways to reduce the amount of Gift Taxes you may owe:

Gifts to Your Spouse: You do not have to pay taxes on any amount given to your spouse as a gift, unless they are not a U.S. citizen.*
Education and Medical Expenses: You will not owe tax on any amount paid for someone else's tuition or medical bills. The payment must be made directly to the educational or medical institution and not to the person receiving the education or medical care.
Charitable Donations: Contributions made to qualifying charities are not only deductible on itemized tax returns, you may also deduct the value of your charitable donations from the amount of Gift Taxes you owe. Learn more about charitable contributions
Political Contributions: Political donations are considered gifts, not deductible charitable contributions, and you may exclude any amount given to political organizations. The organization must use the money for its own purposes and may not be acting as an intermediary to dispense the funds to a third party.
Annual Gift Exclusion: In 2013, you may give someone up to $14,000 in gifts before paying any gift tax. The $14,000 annual gift exclusion is a limit on nontaxable gifts per person, and you may give multiple people up to $14,000 each without incurring any tax liability. However, the amounts of your annual gift exclusions are limited to a lifetime total of $5,250,000 ($10,500,000 for married couples) for Tax Year 2013.

*The annual gift exclusion for gifts to a spouse who is not a U.S. citizen is $143,000 for 2013.

 

[mrjarrell]

You should talk to a realtor or lawyer with knowledge of land laws and taxes.

 

[chezuki]

You should talk to a realtor or lawyer with knowledge of land laws and taxes.

Don't be ridiculous. He should blindly follow the advice of any and every member who takes a second to google for him. Lawyers are for sissies!

 

[slowG]

I've been googling off and on for the past hour. I unlike others appreciate first hand experiences. You are 0 help, pls move along.

 

[mrjarrell]

Don't be ridiculous. He should blindly follow the advice of any and every member who takes a second to google for him. Lawyers are for sissies!

I don't screw around with Google when taxes are on the line. I like my nethers the way they are.

 

[chezuki]

I've been googling off and on for the past hour. I unlike others appreciate first hand experiences. You are 0 help, pls move along.

Who me?

 

[slowG]

I'm just trying to figure out what some have done to transfer land, the easiest way possible. Whether it be gifting or selling. Sometimes there are better options depending on the situation. Trying not to make it any more stressful then it already has become.

 

[HoughMade]

...Lawyers are for sissies!

Oh for sisses.

Agreed.

See a real estate lawyer, skip the realtor. This is an easy job that should take less than 5 hours....and that's allowing for some YouTube time.

 

[88GT]

I've been googling off and on for the past hour. I unlike others appreciate first hand experiences. You are 0 help, pls move along.

Upfront disclosure: I have no direct experience with the gifting of real property, but I do have experience (and kind of a lot) in the exchange of real property.

I don't believe there's a limit on the acreage of land that can be gifted (or even the value of that land), but the tax consequences are going to be dependent on the market value of that land at least. A conversation with a real estate attorney or tax guru is in order here.

There should be no need for concerning oneself with engineering and/or re-zoning and/or re-platting for a simple change of ownership. There are two exceptions I can think of off the top of my head. First, any grandfathered conditions under the old owner would have to be brought up to the newest standards upon change of ownership. THe other might be anything covered by existing deed restrictions. However, in general, the mere act of conveying a parcel of land does not require any additional actions on the part of the either "seller" or "buyer" to have a valid transaction.

There are ways around the gifting. Sales and quit claim deeds, for example.

 

[forgop]

Easy. Purchase agreement for $1.

 

[hornadylnl]

OP, sounds like you might have enough assets that you need to have an attorney do an estate planning for you. A good lawyer can save your family thousands of dollars in taxes.