Posted 09 June 2009 09:50 PM Can someone just sign their house as a gift over to you? Is it a tax write off for them? Is this possible? A home worth more than $150k
As an Enrolled Agent (a designation by the IRS of certain tax professionals indicative of their expertiece) I think I can help you with the tax consequences of this. Unless you are a recognized charity, they do not get a tax write off. In fact, depending upon your relationship with them and how the transaction is structured, they may face gift tax consequences. There are trusts that can be established to make the transfer that can possibly avoid the the gift tax on the transaction. You, and more importantly the giver, should consult a tax professional experienced in this area of the tax law. (Not necessarily an accountant. Not all accountants know all that much about taxes. Some of the worst mistakes I have seen on returns were on those prepared by CPAs. But that's a rant for another forum.)
The giver might also want to talk to an attorney experienced in trusts to see if the use of a trust to avoid gift tax consequences makes sense.
As far as signing their house over to you as a gift - yes it can be done. It might be a good idea to consult someone experienced in real estate to make sure you get a clean title.
