Land gifted and Taxes

[Reroka]

I havce been gifted 3.5 acres of land in South Carolina. Need to know how I go about paying taxes on it or do I even have to considering its a gift?

[Rain Man]

Originally Posted by RockChalk

The individual receiving a GIFT does not have reportable taxable income. Your Father, who is doing the actual gifting, may or may not have to report. Given that it's valued at $100K, that goes well over the annual exclusion amount, so he likely will file a gift tax return but will have lifetime exclusion to eat that up.

As the owner of that land, you'll likely pay annual property taxes on it. But nothing from an income tax standpoint unless you sell it.

I don't know how it works with a piece of land with the title, but I think a common strategy is that you give the person money up to the Limit over several years. I know it used to be $10,000 as a limt, but that may be outdated. So your father can give you a 10% share of the land with no taxes every year for 10 years and it'll always be under the limit, whereas if he gives it to you all in one chunk it's over the limit and you owe gift tax. I think if you have both a father and a mother that they can each give you $10,000 or whatever the limit is in one year with no gift tax so that it only takes five years. Or your father can give you ten thousand and your wife 10,000, and your mother can give you ten thousand and your wife ten thousand, and each gift Falls under the limit so you can do it in two and a half years.

But I've heard of doing that for cash, and I don't know how that would work on a monolithic asset like land.

[Reroka]

The money for building this home is flying out the door Already. Holy shit did not know building a home required this much work. I thought the builder we hired to build it would do this lol

[scho63]

Sell it and invest it all in a penny stock.

[scho63]

Or clear some of it, build a giant Man Cave and host CP get togethers every game day.

You can charge $10 a pop for entry.

[Iowanian]

If you'd like to avoid all of the headaches, I can send you my information and you can transfer it to me. I'll carry this burden for you.


Also, when you build, plan on it going 30-40% over what you think it's going to cost you.

[Reroka]

Originally Posted by Iowanian

If you'd like to avoid all of the headaches, I can send you my information and you can transfer it to me. I'll carry this burden for you.


Also, when you build, plan on it going 30-40% over what you think it's going to cost you.

Already at that point, I planned on 300k I am closer to 500k right now.

[BryanBusby]

Sell it and buy whores

[wutamess]

Watch Yellowstone

[Rain Man]

Originally Posted by BryanBusby

Sell it and buy whores

Never buy those. Lease only.

[srvy]

Did you crash and burn the drone yet?

[Shaid]

buy it for a dollar

[Miles]

Originally Posted by Rain Man

I don't know how it works with a piece of land with the title, but I think a common strategy is that you give the person money up to the Limit over several years. I know it used to be $10,000 as a limt, but that may be outdated. So your father can give you a 10% share of the land with no taxes every year for 10 years and it'll always be under the limit, whereas if he gives it to you all in one chunk it's over the limit and you owe gift tax. I think if you have both a father and a mother that they can each give you $10,000 or whatever the limit is in one year with no gift tax so that it only takes five years. Or your father can give you ten thousand and your wife 10,000, and your mother can give you ten thousand and your wife ten thousand, and each gift Falls under the limit so you can do it in two and a half years.

But I've heard of doing that for cash, and I don't know how that would work on a monolithic asset like land.

With property the idea is similar. The short version is it’s commonly addressed through a loan where you forgive up to the annual gift limit in principal and interest until it’s paid off.

[MarkDavis'Haircut]

Taxation is theft so you know you will have to pay something.

That is a pretty area of South Carolina.

[Bump]

ofc you gonna have to pay rent on it, you don't own it.

[Rain Man]

Originally Posted by Miles

With property the idea is similar. The short version is it’s commonly addressed through a loan where you forgive up to the annual gift limit in principal and interest until it’s paid off.

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