Florida Real Estate Law
Q: What are the real estate laws/taxes if your parents give you a house they own out right? Does anyone know the Florida real estate laws regarding giving a house as a gift? Can it be done? If so, what are the tax penalties? My parents own the house that I currently live in. If they wanted to give the house to me as a gift can that be done legally if the house is paid for?
A: Your parents can gift the house to you at any time. You would have to file gift taxes with the IRS depending on how much the house is worth - over $1.1 Million - then you may need to pay a gift tax which requires liquid resources. Your parents would have to file gift taxes even though the Feds allow a total of $1.1 Million to be gifted for an entire lifetime - only in $11K portions. Perhaps setting up a trust with you as the beneficiary may be one way to avoid taxes In Michigan, your parents can gift you 10k each without any tax. If you are married, that can be 40k per year. Do it over a period of time and there will be no taxes.