Here’s a notice that came out from the IRS bulletins:
“The IRS Estate and Gift Tax Program recently started working with state and county authorities in several states to determine if real estate transfers reported to them are unreported gifts. Although a tax may not be due, a gift tax return may be required for real estate transfers above the annual exclusion amount. Penalties will be considered on all delinquent taxable gift returns filed.”
What does this mean to you? If you put someone on the deed to your real property, or if you transfer ownership of your real property (say to your children or grandchildren), you may be required to file a gift tax return.
For information on gift and estate taxes visit the following IRS link:http://www.irs.gov/businesses/small/article/0,,id=98968,00.html
You can also feel free to call me with any questions.