gifting of commerical property
i have gifted a small commeracial bldg (35oo sq ft) to a family memaber this year–
do i fill out a special tax report or do they — i mean do i put it on my income tax
Terry Says
I hope you had an attorney handle and document this gift, and transfer of title. If it was truly a gift, then the recipient does not owe any taxes. But the gift must have a valuation– if only for your estate tax purposes, and for his/her new cost basis.
You do not get a tax deduction for this gift, but it is part of your combined estate and gift tax credit (currently $13.99 million) and for state estate taxes if you live in a state (such as Illinois) that has a much lower ceiling for estate taxes.
I highly recommend you contact an estate planning attorney to potentially file a gift tax return, documenting the value of this gift, and establishing “basis” for the recipient.
